Sonic Automotive Settles Lawsuit, Ends Ban on TrueCar

TrueCar has settled their lawsuit with Sonic Automotive. This news comes on the heels of TrueCar making headlines for numerous reasons, including their relationship with AutoNation. TrueCar has also been sued by 120 dealers in NYC, sued for acting as a dealer and always company elicits some sort of opinion in the retail automotive space.

The lawsuit between TrueCar and Sonic Automotive was related to usage of company trademarks. According to a press release from TrueCar, the outcome of the settlement is that, “TrueCar established its sole and exclusive rights to its TRUECAR trademark and TRUE family of trademarks and Sonic has agreed to transfer to TrueCar all rights to and use of its TRUE PRICE, TRUE VIEW and all other TRUE-related marks.” Also part of the agreement is Sonic dropping their ban on using TrueCar in their dealerships. The end to that ban is surely good news for TrueCar,which just saw its business relationship with AutoNation severed earlier this month. Sonic Automotive was ranked number five in the Automotive News list of the top 150 dealer groups this past March while AutoNation was ranked number one.

Remarks on this settlement were readily available from both parties. In a press release the CEO of TrueCar, Scott Painter spoke out about the recent settlement. “Protecting our valuable intellectual property is of paramount importance to our business,” Painter said in a statement. “So we are pleased to resolve this litigation. Sonic has been a valuable business partner in the past and we look forward to re-establishing a mutually beneficial business relationship with them in the future.” As the potentially valuable business relationship between TrueCar and Sonic begins, Sonic Automotive executive vice president of operations Jeff Dyke released a statement through TrueCar.

Speaking about the recent legal decision between Sonic and TrueCar Dyke said, “We are pleased to come to a resolution with TrueCar. They will continue to build their brand around TRUE and Sonic will continue to enhance its Sonic brand with its own unique, market-based pricing model. With the lawsuit resolved, Sonic has lifted its policy of not doing business with TrueCar and is open to evaluating from a corporate level whether its dealerships will participate in TrueCar programs going forward.”