A racketeering class action accuses Mercedes-Benz of defrauding customers by having a designated service shop install third-party parts at Mercedes prices.
Lead plaintiff Steve Ferrari claims Mercedes-Benz “directly participated in the OEM scandal” by “keeping it an internal secret” and taking no corrective action to stop co-defendants Autobahn Motors and Sonic Automotive from using after-market parts and claiming they were made by Mercedes.
Autobahn has falsely advertised since 2005 that it uses only genuine Mercedes parts, Ferrari claims. It is legal to use after-market, third-party parts to repair cars, but charging for genuine Mercedes-Benz parts, though not using them, is fraud, which Mercedes-Benz knew but concealed, Ferrari says.
He claims Autobahn runs a parts-laundering scheme in which it buys non-OEM parts from the same vendors to whom it sells genuine Mercedes-Benz parts, to conceal its use of third-party parts and paints.
And, he claims, Autobahn farms out auto body repair work to a nonparty company called Dent Wizard, but falsely claims its own auto body shop did the work.