"Manufacturers and dealers have disagreements from time to time," the statement said. "We look forward to continuing our successful partnership with General Motors at our other GM dealerships."
The lawsuit identifies Michael R. Leep Sr. as the store's dealer operator.
A spokeswoman for GM said the suit was settled on or about Oct. 22. She declined to comment about the settlement, saying that its terms are confidential.
"Davenport is an important market for Chevrolet. We intend to continue to take care of our customers' sales and service needs in the community, and we are putting plans in place to create a great customer experience," GM wrote in a statement emailed to Automotive News by the spokeswoman. "However, we have nothing specific to announce at this time."
According to gurleyleep.com, the Misha-waka, Ind., dealership group operates nine dealerships in northern Indiana selling GM's Buick, Cadillac and GMC brands, as well as Audi, Ford, Honda, Hyundai, Kia, Lincoln, Mercedes-Benz, Nissan, Sprinter, Subaru and Volkswagen.
The group also operates 12 stores in Iowa under the Lujack name, including Lujack Chevrolet and other dealerships selling Audi, Honda, Hyundai, Kia, Lexus, Mazda, Mercedes-Benz, Nissan, Porsche, Toyota and Volkswagen.
The group also owns Capital Honda in Okemos, Mich.
GM filed the federal lawsuit in January 2013, saying that the Chevrolet dealership committed fraud by reporting sales of new vehicles to retail customers, then transferring those vehicles to other affiliated non-GM dealerships for resale as used vehicles.
The "scheme is known within the Leep enterprise as 'Daisy Chain,'" GM claimed in court documents.
"Dozens, if not hundreds of Leep's reports of bona fide retail sales to individual customers were false," GM's lawsuit said. "Leep has thereby breached the dealer agreement and violated applicable law."
The lawsuit alleged that incentives were claimed for "some or all of the purported buyers" and numerous fraudulent, misleading and improper customer surveys were submitted.
The Chevrolet dealership wrongly received thousands of dollars in payments from GM under Standards for Excellence, a program that rewards dealers for increasing sales and hitting customer satisfaction goals, the lawsuit said.