Cars for Cluker Class Action Commenced

A class action complaint was filed against the Penske Automotive Group on October 8, 2009 in the United States District Court for the Eastern District of New York based on allegation that the Penske dealerships unlawfully retained the entire scrappage value of vehicles traded in under the Cash for Clunkers Program. The case is captioned Allegretti v. Penske Automotive Group, Inc. and was assigned Case no. 09-cv-4316.

The action is based on the dealer certifications required under the Cash for Clunkers program that the dealer: i) has retained no more than $50.00 of the scrappage value as payment for any of the dealer’s administrative costs in connection with the Cash for Clunkers transaction; and ii) has not charged the purchaser any additional fees for participating in a Cash for Clunkers transaction.

The plaintiff alleges that Penske dealerships unlawfully retained scrappage proceeds in excess of the $50.00 limit specified in the certification. The complaint alleges claims for unjust enrichment and violations various state consumer protection laws, including section 349 of New York’s General Business Law.