Axed Chrysler Dealerships Sue US For $130M

Law360, New York (February 18, 2011, 6:36 PM EST) -- Numerous car dealerships that lost their businesses in the former Chrysler LLC's bankruptcy have filed a $130 million suit against the U.S., saying the government ordered it to renege on franchise contracts as part of its bailout and restructuring deal.

Sixty-four Chrysler dealers across 29 states filed a complaint Feb. 15 in the U.S. Court of Federal Claims, saying the government's involvement in the restructuring constituted a taking of their property for which they should be compensated.

The dealers acknowledged the government's actions "served the public...
To view the full article, register now.