S&C Secures Latest Victory for Volkswagen in Antitrust Litigation by Prevent Group

Volkswagen AG and Volkswagen Group of America again prevailed in their antitrust dispute with automotive component parts supplier Prevent Group. On July 11, Judge Rodney Gilstrap in the Eastern District of Texas dismissed all of Prevent's claims on the basis of forum non conveniens.

This marks the third dismissal of a U.S. lawsuit that S&C has obtained for Volkswagen in its long-running worldwide dispute with Prevent Group, which alleges that Volkswagen has tried to put it out of business or stop it from acquiring other automotive parts suppliers. S&C previously prevailed in two suits in the Eastern District of Michigan, with the U.S. Court of Appeals for the Sixth Circuit affirming one dismissal.

In its third attempt to use U.S. forums to litigate foreign conduct, Prevent reincorporated its U.S. affiliate in Marshall, Texas and sued Volkswagen there. Prevent initially persuaded the court to deny Volkswagen's motion to dismiss for forum non conveniens. After S&C obtained mandamus relief in the Fifth Circuit, Volkswagen filed a renewed motion to dismiss. Judge Gilstrap dismissed the case, making this one of a very small number of threshold dismissals (especially on forum non conveniens grounds) ever granted in the Marshall Division.

The team representing the Volkswagen entities includes Sharon Nelles, Steve Holley, Suhana Han, Lenny Traps, Jason Barnes, James Ivker, Alexandra Rogers, Olivia Berci,

Connor Cardoso, Emile Shehada and Jake Ciafone, with a special assist from Jeff Wall (at the mandamus stage).

Sharon and Steve were named runner-up "Litigators of the Week" by the American Lawyer Litigation Daily for this result.