Four former minority dealers are suing General Motors, alleging the automaker's minority dealer program deceived and discriminated against them.
GM says the suit, filed last month in a New Jersey federal court, lacks merit. The automaker would not address specific allegations in the suit.
The plaintiffs allege that GM deliberately withheld critical information about the financial troubles of the dealerships they acquired under the minority program. That lack of data caused them financial hardship, they claim.
The former dealers say it is virtually impossible for minority dealers to buy out GM's interest in a dealership in the five- to seven-year period the minority program calls for.