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Mass Action Lawsuit Against Carfax Dismissed

December 14, 2016

CENTERVILLE, Va. — The $350 million mass action lawsuit against Carfax, which listed nearly 500 dealers and stalled the sale of its parent company R.L. Polk & Co. before its eventual sale to IHS three years ago, has been dismissed.

The suit was originally filed in April 2013 on behalf of 121 dealerships at the time, including the lead plaintiff, Maxon Hyundai Mazda. It charged that the vehicle history report provider forged illegal alliaince with key players in the auto industry, freezing out competition and forcing dealers to pay higher prices for unreliable vehicle history reports.

On Sept. 30, however, U.S. District Judge Alison Nathan found no basis to let the more than three-year-old case go forward, and granted Carfax’s motion for partial summary judgment. The order was released on Dec. 9.

“We are gratified that the court agreed with our position that this lawsuit was unfounded,” said Dick Raines, president of Carfax. “We’re already hard at work creating the next generation of products and services to help our dealer customers and millions of consumers.”

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