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