An influential group of automobile dealers from USA have filled a case against Mahindra & Mahindra on the allegation of resorting to fraud, misrepresentation and conspiracy on the 4th of June. They have also included the counterpart of the company present in USA. A press report tells that the company baffled hundreds of U.S. auto dealers and walked off with more than $ 60 million in cash and trade secrets. The allegations are that the company did not keep up its promise. Although, after so many allegations Mahindra & Mahindra issued a statement on Wednesday stating that the company denies all allegations of fraud, misrepresentation and conspiracy.
In reference to the law suit filed on 4th of June, the statement was that if any fraud or misrepresentation is done by the global dealers, the Mahindra and Mahindra group cannot be held liable for that. The lawsuit of mass tort had been filled in the US District Court of Atlanta on 4th of June, 2012 against Mahindra and Mahindra, Ltd, and Mahindra USA, Inc. by dealerships of New Hampshire, Florida, California, New Jersey, and Washington.
According to the attorney of the case Michael Diaz, the managing partner of Miami-based Diaz Reus & Targ, said that the dealers were told about the delivery of the light trucks and SUVs in the US market but the company intentionally delayed certification of its vehicles after obtaining the dealership fees and trade secrets, and began pursuing other partners in the U.S., which was violation of the commitments that the company has made. He further added that the companies false representation allured the dealers to make investments and promote Mahindra's brand name. Diaz also explained that the company has failed to comply the obligations with the dealers and now they are left with nothing.