64 terminated Chrysler dealers sue U.S. Treasury Department

A total of 64 dealerships that were terminated during Chrysler’s 2009 bankruptcy reorganization sued the U.S. Treasury Department today. The suit, filed in the U.S. Court of Federal Claims, says that the government violated the Constitution by taking the franchises and their state legal rights without proper compensation.

How do the 64 dealerships want to be compensated? According to the filing, the dealers are seeking $130 million.

A spokesman for the U.S. Treasury Department and Chrysler did not comment. The 64 dealers make up about 8 percent of the 789 dealerships terminated in June 2009.

– By: Omar Rana

Source: Automotive News