US car dealers sue Mahindra & Mahindra A group of American car dealers are suing Mahindra & Mahindra, delivering another setback to the Indian company's long-delayed plan to crack the US automotive market. Dealer groups from five states filed a lawsuit in a federal court in Atlanta this week, accusing Mahindra and its US affiliate of fraud, misrepresentation and conspiracy, and seeking financial damages. The lawsuit claims that Mahindra duped them into making investments and promoting its brand name but then reneged on its promises to deliver vehicles and walked away with more than $60m of cash and trade secrets. "Mahindra was given on a silver plate a network of dealers from coast to coast in the US," said Carlos Gonzalez, an attorney with the Miami-based law firm Diaz Reus & Targ, who are bringing the case. This network included on-site sales points that were customised specifically to sell Mahindra vehicles. Mahindra declined to comment on the case because it is in court but said that it "unequivocally denies all allegations of fraud, misrepresentation and conspiracy." The Indian company called attention to an earlier lawsuit brought by dealers in Missouri, where the court dismissed claims against it, and also ruled that it could not be held liable for any action by Global Vehicles USA, its estranged American distribution partner, in respect to dealers. Mahindra is the world's top-selling tractor producer and makes India's Scorpio SUV, which it wants to sell in the US as a low-cost entrant to that popular segment, along with pick-up trucks. The US is seen by carmakers as the world's most sophisticated big automotive market. None of India or China's rising carmakers have made significant inroads there because of the tough competition and high barriers to entry, notably the cost of establishing dealership networks. According to the dealers" complaint, Arun Jaura, a senior Mahindra executive, repeatedly exclaimed "I love America!" at a show held in Atlanta in 2007 aimed at attracting prospective dealers. However, the Indian group's US launch, originally planned for as far back as 2009, was repeatedly delayed. The lawsuit claims that dealers provided $9.5m of cash and $100m of trade secrets associated with marketing and showcasing the brand but were left with idle showrooms. Mr Gonzalez said that the dealers were looking to recover their investment and would also seek punitive damages because of alleged "gross misconduct and fraud." Separately, Mahindra was sued in 2010 by Global Vehicles over a soured agreement to import its vehicles. According to the Indian company, that dispute aired similar allegations and claims and a London-based tribunal ruled in its favour in February. Global Vehicles could not be reached for comment on Thursday.