£260m lawsuit as Pendragon are accused of fraud over software business
Car dealer Pendragon is currently facing a £260m lawsuit in the High Court.
The lawsuit alleges that one of Pendragon’s subsidiaries engaged in fraud and contract breaches by directly selling new software to dealerships in Asia and the Pacific, a product that they were supposed to market through an agreement with Pinewood AP Ltd, a marketing company.
Pendragon has responded by attempting to have Pinewood AP’s claim dismissed, according to reports in The Telegraph.
In a recent court hearing, it has been reported that Pinewood AP requested information from the subsidiary to determine if there is evidence of fraud in the reseller agreements.
A decision on Pendragon’s application is expected soon.
Just last week, the Nottingham-based car dealership agreed to sell its UK motor division to the US-based Lithia group for £280m.
However, this deal faced opposition when Pendragon’s largest shareholder, Hedin, attempted a takeover bid just two days later, which was ultimately rejected.