TrueCar Inc. is responding to a false advertising lawsuit filed this week by 117 automotive dealers. In a press release, the vehicle-shopping site calls the lawsuit “meritless” and says it as “high confidence that we are compliant with all laws applicable to our business, including those referenced in this litigation.”
The lawsuit was filed Monday in U.S. District Court in New York by dealers representing 117 new-car franchises. They claim they are victims of false advertising and unfair competition due to TrueCar tactics. Dealer lawyer Leonard Bellavia filed the suit on behalf of the plaintiffs, who are not current users of TrueCar, but say they are losing sales because of TrueCar’s advertising.
Aside from the press release, TrueCar says it plans no further comment on the lawsuit and that expects “to be fully vindicated.”