Lawsuit Filed to Block Avis Budget From Acquiring Dollar Thrifty

Three Dollar franchisees have filed a lawsuit against Avis Budget Group to block its attempt from acquiring Dollar Thrifty Automotive Group.



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The lawsuit, brought by James Cassan, Cassan Enterprises, CMC Investments and Todd Investments, states that the acquisition is in violation of the Clayton Antitrust Act.

Cassan is the part-owner and president of Cassan Enterprises, which owns a Dollar franchise and a fleet of rental vehicles that it leases to CMC Investments and Todd Investments, according to the lawsuit.



CMC Investments and Todd Investments operate Dollar-Rent-A-Car franchises at Seattle-Tacoma International Airport in Seattle and Portland International Airport in Portland, respectively.

The plaintiffs filed the lawsuit on Dec. 1 in Seattle to stop Avis Budget from buying Dollar Thrifty. The lawsuit states that the acquisition will lessen competition, increase prices, reduce supply, and negatively impact service. Furthermore, it will create a monopoly in the rental car industry and adversely impact business travelers and consumers at airports throughout the United States.

The plaintiffs also filed a similar lawsuit against Hertz Global Holdings Inc. and Dollar Thrifty on Sept. 23. In that case, the plaintiffs issued the same complaint that Hertz's proposed acquisition of Dollar Thrifty at $50 per share was a violation of the Clayton Antitrust Act.

"The acquisition, or the attempted acquisition, by Hertz of Dollar is, in our judgment, a blatant violation of the anti-merger statute which is section seven of the Clayton Anti Trust act," says Joseph Alioto, an antitrust attorney representing the plaintiffs, told Auto Rental News at the time.