US dealers file lawsuit against Mahindra, allege fraud

It seems Mahindra woes in United States are far from over. Earlier, Global Vehicles USA had filed arbitration against Mahindra over distribution of their vehicles in the US market. The ruling went in favour of Mahindra then, clearing their path for entering US. However, now the dealers appointed in US by the carmaker have filed a case against them – alleging that company accumulated USD 9.5 million and trade secrets and walked away looking for new partner.

Miami based law firm of Diaz Reus & Targ is representing dealers from New Hampshire, Florida, California, New Jersey and Washington; in a lawsuit filed at district court in Atlantic. The dealers claim that Mahindra promised to have trucks for sale in US in 2008 and SUVs by 2009; however, none of that has materialised in 2012. 

Mahindra on the other hand has issued a statement that - "Mahindra unequivocally denies all allegations of fraud, misrepresentation and conspiracy."  However, the company avoided making any further comments as the matter as it is still pending in court. Company also pointed out that earlier some dealers had filed a suit in Missouri court, but the court dismissed all claims citing that Mahindra could not be held responsible for any actions of Global Vehicles.