Oct. 20 (Reuters) – The U.S. Department of Justice has filed a lawsuit against Tesla that alleges auto dealers conspired to restrict competition through Louisiana’s ban on direct sales of cars.[TSLA.O]supports one of its legal claims.
Tesla is suing the Louisiana Automobile Dealers Association, members of the Louisiana Automobile Commission, and a group of dealers. The company, led by billionaire CEO Elon Musk, appealed the lawsuit’s dismissal in June.
The Justice Department on Thursday filed a friend-of-the-court brief with the New Orleans-based U.S. 5th Circuit Court of Appeals, arguing that the trial judge in the Tesla case misinterpreted antitrust law in ruling to dismiss the case. .
The government’s filing mirrors Tesla’s filing last week, in which U.S. District Judge Sarah Vance ruled the automaker found that members of the Louisiana Motor Vehicle Commission intended to stifle market competition. He said the court incorrectly ruled that proof was required.
The government said in its filing that it does not support Tesla or its opponents and has no view on the “appropriate disposition” of the appeal.
Members of the Louisiana Motor Vehicle Commission and an attorney for the auto association did not respond to requests for comment.
Tesla did not immediately respond to a similar request. The Justice Department declined to comment.
The Justice Department and Tesla’s lawyers said that U.S. civil antitrust laws do not require a statement of intent. Adding this requirement would “unreasonably” restrict antitrust laws, Justice Department lawyers told the appeals court.
Tesla is one of the few car companies that sells directly to consumers rather than selling or servicing its vehicles through independent franchises.
In his ruling against Tesla, Vance said the state’s ban on direct sales “applies to all automakers, and Tesla makes no allegations of anti-Tesla hostility on the part of the Louisiana Legislature.” .
Tesla countered in its appeal that the Louisiana car dealers “mutually agreed to harass Tesla with baseless investigations and force it out of the state.”
The appeals court has not yet set a date for argument.
Under a 2020 settlement with Tesla resolving similar claims, Michigan agreed that “any Michigan resident may legally purchase a Tesla and have it serviced in Michigan.”
The case is Tesla v. Louisiana Automobile Dealers Association et al., U.S. Court of Appeals for the Fifth Circuit, No. 23-30480.
For Tesla: Ari Holtzblatt of Wilmer, Cutler, Pickering, Hale & Doll.Mark Beebe of Adams and Reese
For Louisiana car dealers: Paul Clement of Clement & Murphy
U.S. Court Officer: Matthew Mandelberg of the U.S. Department of Justice
read more:
Tesla loses bid to overturn Louisiana ban on direct car sales
Tesla files ‘right to repair’ antitrust class action lawsuit
Tesla seeks to overturn Louisiana’s ban on direct car sales
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Report by Mike Scarcella
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