AutoCanada resolves $250M lawsuit towards former CEO Patrick Priestner

BE desk

AutoCanada Inc. and the corporate’s founder and previous CEO Patrick Priestner have settled a yearslong prison fight, with neither celebration admitting wrongdoing or legal responsibility.

The Edmonton-based dealership workforce introduced a $250 million lawsuit towards Priestner in 2019, alleging the previous corporate government “breached his fiduciary and other duties to AutoCanada by appropriating corporate opportunities of AutoCanada to acquire dealerships privately.”

The swimsuit revolved round a number of dealerships AutoCanada used to be now not ready to buy on the month on account of positive automakers’ prohibition on publicly traded teams obtaining their retail outlets.

Priestner — who based AutoCanada in 2006, served as CEO till 2014 and as board chairman till 2016 — countered in a 2019 commentary of protection that the dealerships he bought via privately held CanadaOne Auto Workforce have been bought with the “express permission” of AutoCanada. He additionally claimed the lawsuit used to be filed in “malicious religion.

Each AutoCanada, which now owns 83 franchised dealerships in Canada and america, and CanadaOne, which owns 29 new-car retail outlets throughout 4 provinces, have endured to increase over the intervening 4 years.

In a joint commentary Sept. 8, the 2 firms introduced they’d assuredly to unravel the 2019 swimsuit towards Priestner. They didn’t lend complete information about the agreement, however mentioned neither celebration will admit wrongdoing or legal responsibility, and that some actual property will trade arms as a part of the answer.

AutoCanada will promote two homes on which CanadaOne dealerships are positioned to CanadaOne, week CanadaOne will amend the rentals for 2 homes it owns that area AutoCanada dealerships.

The 2 firms have additionally assuredly to “co-operate on certain commercial matters for each other’s mutual benefit.”

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