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Case ID: 3654 | Automotive | 08/31/2004
A class action has been filed against Speedway Chevrolet of Broken Arrow, Oklahoma, and its parent company, Sonic Automotive, Inc., on behalf of Oklahoma consumers who have purchased autos from the dealership, and who allege that the dealership and its parent engage in “stuffing” practices where they defraud customers by tricking them into buying unwanted or unneeded extras during car deals. The action seeks unspecified compensatory and punitive damages.
Lead plaintiff Ricky Van Heel worked for Speedway for four years until April 2004 when he was fired, allegedly in retaliation. Van Heel alleges that his termination came after he wrote a letter to Sonic Automotive executives exposing practices of "stuffing" unwanted or unneeded extras during car deals. Although he was rehired, Van Heel alleges that his sales commissions were cut dramatically, forcing him to quit in June 2004. Van Heel alleges that customers were charged for items such as rust-proofing, vehicle identification number etching, and extra warranties without their knowledge. The items were allegedly added in a flurry of paperwork at the end of each deal, so that the customer ended up signing up for the unwanted extras. This lawsuit is one of a number that have been filed with the assistance of Duane Overholt, who is working with Van Heel's attorneys. Overholt is a former Sonic Automotive employee and whistleblower who is crusading to expose alleged Sonic Automotive’s dealership schemes. After an investigation by the Florida attorney general's office in 2002, Sonic Automotive revamped its sales and financing practices, firing 200 employees. The company was stung again in December 2003 after NBC's "Dateline" broadcast similar "stuffing" tactics at one of its North Carolina dealerships. It is one of the largest car dealer ownership groups in the United States, with 189 dealership franchises, representing 37 different brands of cars and light trucks, at 151 locations, and 40 collision repair centers in 15 states.
At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Automotive Cases of Interest Attorneys are investigating claims of highway robbery performed by Las Vegas car rental companies such as Hertz, Budget and Avis. Instead of charging consumers market rate of gasoline and including the fill up in the price of the rental, consumers may have been charged upwards of $7.00 per gallon. A class action has been filed against The Goodyear Tire & Rubber Company (NYSE: GT) and certain of its officers and directors by stockholders who purchased the company's common stock between March 26, 1999, and October 22, 2003. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. Camden, New Jersey Foulke Management Corporation, which operates a number of car dealerships, has engaged in a series of bait-and-switch sales practices. The practices were so widespread and frequent that a couple filed a class action lawsuit against Foulke. If you are thinking about leasing a vehicle, or don't know if you should lease, please look into the pros and cons very carefully before making your decision. A Florida class action has been filed against auto financing company BMW Financial Services NA, LLC, on behalf of vehicle lessees who allege that the company charged them "taxes" that were actually just hidden fees to cover wear and tear, and excess mileage on the vehicles, in violation of Florida consumer protection laws and the federal Consumer Leasing Act. The unfortunate practice of insurance credit scoring is legal under federal law, with some limitations. Four similar class actions have been filed against auto insurance provider Progressive Corporation and related companies on behalf of policyholders who allege that the insurers do not advise them that it uses their credit reports in deciding to force them to pay higher premiums than others, in violation of the federal Equal Credit Opportunity and Fair Credit Reporting acts.
A national class action has been filed in Utah against German automaker Volkswagen of America, Inc. The action is brought in behalf of all U.S. residents who have purchased or leased 2002-2003 Volkswagen Jetta automobiles with factory installed heated seats. The Jetta owners allege that the seats are defective and overheat, causing property damage and bodily harm. The action only seeks to establish a fund to repair and or replace the defective seats, it does not seek any damages for personal injury. The action is brought under the theory of strict liability, claiming the seats were a defective design as well as claims for breach of implied and express warranties, negligence and a failure to warn Jetta drivers of the risk of harm and property damage. |
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