Posternak Blankstein & Lund LLP is now Arent Fox. Read the press release

Dealers Say BMW's $18M SEC Settlement Reveals Hidden Info

An $18 million settlement between BMW of North America and the U.S. Securities and Exchange Commission ending allegations of improper sales tactics revealed grievous discovery violations in a separate civil suit, according to a motion for sanctions filed Friday.

Florida car dealer Braman Motors told a Florida federal judge that the SEC settlement and its preceding investigation indicates that BMWNA improperly withheld discovery information concerning the implementation of "punching" sales programs.

"The failure to produce one or two documents containing this information may constitute a good faith mistake," Braman Motors said in its motion. "But the wholesale failure to produce any discovery containing the above information, even as BMWNA simultaneously provided it to the SEC, leads to the inescapable conclusion that BMWNA has acted in bad faith."

Read the Law360 article

Contacts

  • Read Time
    1
    Minute

Continue Reading