The suit claims General Motors of Canada Ltd. breached franchise laws when it terminated dealers in connection with last year's government bailout of the auto industry.
The suit also names a Canadian law firm, which had been retained in advance to represent dealers in a GM restructuring or bankruptcy, alleging the firm failed to disclose it was also acting for the Canadian government, which had insisted GM scale back its dealership network as a condition for public funding.
"These dealers include some of the best in the country," said David Sterns, lawyer for the lead plaintiff. "The offer they were handed gave them a fraction of what their businesses were worth, but they had no collective representation and precious little time."
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