No U.S. Litigation Between VW and Prevent

After a “protracted dispute” in Germany between Volkswagen AG and Prevent Group, the automaker told the Sixth Circuit that the auto parts maker cannot bring litigation to the U.S. VW and its U.S. unit Volkswagen Group of America Inc. filed a brief asking the Sixth Circuit to stop the appeal from two Prevent Group affiliates: Prevent USA Group and Eastern Horizon Group Netherlands BV. The appeal sought to revive Prevent’s 2019 lawsuit which alleged the automaker blocked acquisitions of smaller suppliers to keep Prevent from gaining leverage.

U.S. District Judge Bernard A. Friedman determined that neither Volkswagen nor Prevent had a U.S. connection to justify litigation in the U.S.

In a July 7 brief, Volkswagen accused Prevent of forum shopping and manufacturing links to the U.S. to take advantage of the U.S. antitrust law.

“Prevent Group made Prevent USA Corporation a named plaintiff, but it is a quintessential shell company: it was incorporated in an apartment building in Pittsburgh and is housed in a drawer in an accounting firm in Troy [Michigan], with no actual operations in the United States,” Volkswagen says. “In any event, the complaint is clear that Prevent USA is suing only on behalf of the German-owned and -operated ‘Prevent Group,’ which is the real party in interest here.”

This entry was posted in glassBYTEs Headlines and tagged , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *