ELR Citation: 47 ELR 20138
No(s). 2672 CRB (JSC) (N.D. Cal. Oct 30, 2017) (Breyer, J.)

A district court held that owners of Volkswagen-branded franchise dealerships could move forward with their suit against an auto parts manufacturer over its alleged role in the Volkswagen diesel emissions scandal. The dealers contended that the manufacturer conspired with Volkswagen to help create a device to hide substandard emissions rates in “clean diesel” cars, and they brought a private RICO claim against the manufacturer alleging injuries to their business. The manufacturer moved to dismiss the case, arguing that the dealers could not show they suffered an injury from its involvement in the scandal. The court disagreed, holding that there was a sufficiently direct connection between the manufacturer's alleged conduct and the dealers’ alleged injuries. The motion was denied.