ACV settles antitrust lawsuit with AutoIMS & NAAA
Late on Wednesday afternoon, ACV announced the settlement of its antitrust litigation related to the AutoIMS technology platform as well as against the National Auto Auction Association.
In the summer 2022, ACV filed suit after the company was unable to secure a license from AutoIMS, which serves the wholesale automotive remarketing industry with a tool that connects auto auctions, consignors, third-party services providers and remarketing networks.
ACV said it has now received an AutoIMS license and settled the lawsuit originally filed in the U.S. District Court for the Western District of New York.
According to a news release, the company may now provide services to the 1,300 commercial consignors that currently utilize AutoIMS to connect with hundreds of physical auctions.
ACV said it will also be able to deploy AutoIMS in a way that supports ACV’s digital-focused business model.
“AASC is pleased the parties were able to reach a reasonable agreement and looks forward to meeting the needs of both ACV and our consignment customers,” Auto Auction Services Corp. president and CEO Venkat Krishnamoorthy said in the news release from ACV.
The settlement provides that the litigation will be dismissed with prejudice, according to the news release, which also mentioned that all parties agree that the settlement does not represent an admission of liability on the part of any party to the suit.
The remaining terms of the settlement are confidential, according to Wednesday’s announcement.
“Our objective is to help our commercial and dealer partners achieve their unique and strategic business goals,” ACV CEO George Chamoun said in the news release. “ACV is excited for the opportunity to work with AASC to expand AutoIMS’s capabilities to consignment of vehicles at any location while leveraging ACV’s digital offering.”
Furthermore, the settlement also resolves the litigation between ACV and NAAA.
ACV said the company and its affiliates look forward to participating in NAAA’s membership programs consistent with NAAA’s bylaws.
In recognition of the new relationship, ACV said it will donate to NAAA’s Warren Young Sr. Scholastic Foundation Scholarship Program, which grants academic scholarships to eligible full-time employees of NAAA member auctions or corporate offices, their children or grandchildren.
NAAA released a one-paragraph statement following the announcement:
On behalf of the Board of Directors of NAAA, we are pleased to inform you that we have reached a mutually agreeable settlement of the antitrust litigation brought against the Association and others by ACV Auctions, Inc. Under the terms of the settlement agreement, DAA Oklahoma City and Cross Point NW LLC, which were recently acquired by ACV Auctions, Inc., will maintain their status as Regular Members of NAAA. In recognition of their new relationship with the Association, ACV Auctions, Inc. has agreed to make a generous donation to the NAAA Warren Young, Sr. Scholastic Foundation, which grants academic scholarships to eligible full-time employees of NAAA member auctions or corporate offices, their children, or grandchildren.