Judge Gives Go-Ahead to Honda-Dealer Lawsuit

09/04/96

The Associated Press reported that U.S. District Judge J. Frederick Motz ruled last Friday that Honda dealers who claim they lost millions of dollars in a company-wide bribery scheme can sue the American Honda Motor Company Co. and its Japanese parent, Honda Ltd. for racketeering and antitrust violations.

About 50 Honda dealers across the country have filed lawsuits, which were consolidated and will be heard in the U.S. District Court in Baltimore. The lawsuits claim that company officials ignored a $15 million scheme in which its executives solicited bribes and kickbacks from some dealers in return for preference when it came to supplying popular models like Accords and Civics.

Honda lawyers have filed a series of motions to dismiss the case, saying that Honda executives were unaware of the scam, and that it did not constitute racketeering.

Paul Dever -- The Auto Channel