Mercedes-Benz USA Confident Of Victory In Class Action Suit
MONTVALE, N.J.--Feb. 20, 2003--Mercedes-Benz USA (MBUSA) pledged to fight an antitrust lawsuit that was certified as a class action by the U.S. District Court of Northern New Jersey.Company officials stated that the lawsuit - filed against MBUSA and independent Mercedes-Benz dealers in the New York region - is meritless and the certification is unwarranted based on the facts and the law. The company said that it will likely pursue an appeal of the class certification order but that even if the class remains certified, MBUSA would ultimately be vindicated by the facts.
"The ruling is disappointing, but hardly surprising given the nature of anti-trust class action law. This is just one step in a long legal process that will ultimately result in MBUSA being vindicated by the facts and the law," said Tracey Matura, general counsel for MBUSA. "The claims in the lawsuit are patently false, and they will be proved false as the litigation proceeds. It will become evident that these claims are at odds with market realities and the company's actual conduct as well as our core business practices."
The lawsuit alleges that MBUSA joined 24 independent Mercedes-Benz dealers and a Long Island, NY accounting firm in a price-fixing scheme designed to increase prices for consumers. The suit seeks treble damages under the antitrust laws for alleged overpayments between 1992 and 1999 made by Mercedes-Benz customers in the New York region.
"Mercedes-Benz is known worldwide for its commitment to innovation, excellence, and providing value to its customers," said Matura. "This entire lawsuit is the result of a newspaper story that reported the unsubstantiated claims of a disgruntled former dealer whose franchise was terminated for good cause. These plaintiffs went to court after seeing this media coverage. Baseless charges shouldn't make headlines, much less a class action lawsuit."
Class certification is not a judgment on the merits of the case, but a ruling on how the lawsuit will proceed. MBUSA maintains:
| -- | There is no basis for class certification because there was no credible evidence of common injury presented to the court. The plaintiffs' expert failed to conduct even the most rudimentary analysis of the issues important to class certification. For example, he never examined actual pricing information produced by the dealers and never considered the extent of competition from other luxury brands. If he had, he would have seen that it is impossible to reasonably conclude that the antitrust claims could be tried as a class action. |
| -- | Mercedes-Benz USA did not engage in, nor participate in any manner, in any price fixing activities. |
| -- | The allegations of price fixing ignore the realities of the highly competitive markets in which Mercedes and its dealers operate and compete. |
| -- | The prices actually paid by customers in the New York region fluctuated significantly during the period in question. |
| -- | Class representation plaintiffs did virtually no comparison shopping, had no personal knowledge of the facts of the case or any basis for their lawyers' charge of price fixing. |
"Mercedes-Benz is an innovative leader in the luxury car market, with a long and admirable record of providing value to its customers," Matura said. "We're confident that the facts are on our side and that we will prevail."
