Glaser Weil Secures Favorable Federal Ruling Allowing CNCDA Suit Against Volkswagen and Scout Motors to Proceed

Glaser Weil is pleased to announce a significant development in its representation of the California New Car Dealers Association (CNCDA) in high-stakes litigation involving Volkswagen Group of America and its affiliate, Scout Motors, Inc.

On March 30, Chief U.S. District Judge Cynthia Bashant of the U.S. District Court for the Southern District of California denied defendants’ motions to dismiss the core claims in CNCDA’s lawsuit, which challenges Volkswagen’s use of Scout Motors to unlawfully compete against its franchised Volkswagen dealers.

In her ruling, Judge Bashant held that CNCDA adequately alleged violations of California law arising from Scout Motors’ direct-to-consumer reservation program, which bypasses Volkswagen’s authorized dealer network.

For more information, read CNCDA’s press release or coverage in Automotive News.

A copy of the court opinion can be downloaded here.

Glaser Weil’s legal team is led by litigation partners Michael Cypers and Julie Gerchik with significant support from litigation associates Andrew Dane, Olivia Weiss and Allyson Werner, as well as San Diego Partner Joe Leventhal.

This lawsuit is one of two major actions in which Glaser Weil represents CNCDA. Learn more about the Sony Honda case.