I In the lawsuit filed on Thursday (January 21st) they throw general Motors and a law firm alleged to have duped them by terminating their dealer contracts.
Dealers were duped
The dealers are the ones were the only ones who had no voice in the restructuring of GM, it says in the lawsuit. General Motors fled into bankruptcy last summer to throw old baggage overboard. The group also terminated hundreds of dealers in order to save costs. With substantial financial help from the US and Canadian governments, GM made a fresh start. In return, the two states now hold a majority in the car manufacturer.
Originally, according to the lawsuit, the law firm Cassels Brock & Blackwell would have wanted to represent the Canadian dealers in the event of GM's bankruptcy. However, the law firm concealed the fact that it also worked for the Canadian government. That had contributed to the bankruptcy of GM. Within a few days, the dealers would have had to look for new lawyers, many dealers would have simply accepted the termination of their contracts under the time pressure.