Company Says the FTC’s Administrative Process
Is Unconstitutional, Depriving Its Right to a Jury Trial
Asbury Automotive Group (NYSE: ABG) today announced the filing
of a lawsuit on October 4, 2024 in the United States District Court
for the Northern District of Texas challenging as unconstitutional
an administrative proceeding filed against Asbury by the Federal
Trade Commission (“FTC”). In August, Asbury rejected as false and
unfounded an FTC complaint that three Asbury dealerships in the
Dallas-Ft. Worth area sold protection products to customers that
the customers did not agree to buy.
The lawsuit Asbury filed in Texas seeks to enjoin the FTC’s
administrative proceeding in that case on constitutional grounds.
Among other things, Asbury’s lawsuit asserts that the FTC’s
administrative proceeding violates Asbury’s constitutional rights
by denying it the right to a jury trial and by allowing the FTC to
serve as both prosecutor and judge in the same proceeding. Asbury’s
lawsuit also contends that FTC commissioners and in-house
administrative law judges are effectively insulated from removal by
the President in contravention of the Constitution’s
requirements.
Similar cases have been filed in federal courts to stop
administrative proceedings conducted by federal agencies following
the United States Supreme Court’s decision earlier this year in
Securities and Exchange Commission (SEC) v. Jarkesy. In that case,
the Supreme Court reaffirmed a defendant’s right to a jury trial,
holding that the SEC could not use an internal administrative
proceeding overseen by its own in-house administrative law judge to
sidestep the requirements of the Constitution’s Seventh Amendment.
Asbury asserts in its lawsuit that the Supreme Court’s holding in
Jarkesy applies to administrative proceedings conducted by the FTC
as well.
“The Supreme Court this year placed limits on the authority of
executive branch agencies. One result is that agencies like the
Federal Trade Commission can no longer operate as both judge and
jury. In its lawsuit filed today, Asbury is seeking nothing more
than the fair administration of justice and looks forward to making
its case in federal court,” said Ed Burbach, counsel for Asbury and
a partner of Foley & Lardner LLP in Austin, Texas.
For inquiries and information, visit
https://investors.asburyauto.com/ftc.
About Asbury Automotive Group,
Inc.
Asbury Automotive Group, Inc. (NYSE: ABG), a Fortune 500 company
headquartered in Duluth, GA, is one of the largest automotive
retailers in the U.S. In late 2020, Asbury embarked on a multi-year
plan to increase revenue and profitability strategically through
organic operations, acquisitive growth and innovative technologies,
with its guest-centric approach as Asbury’s constant North Star. As
of September 30, 2024, Asbury operated 153 new vehicle dealerships,
consisting of 202 franchises, representing 31 domestic and foreign
brands of vehicles. Asbury also operates Total Care Auto, Powered
by Landcar, a leading provider of service contracts and other
vehicle protection products, and 37 collision repair centers.
Asbury offers an extensive range of automotive products and
services, including new and used vehicles; parts and service, which
includes vehicle repair and maintenance services, replacement parts
and collision repair services; and finance and insurance products,
including arranging vehicle financing through third parties and
aftermarket products, such as extended service contracts,
guaranteed asset protection debt cancellation, and prepaid
maintenance. Asbury ranks 18th in the 2023 Forbes list of America’s
Best Mid-Sized Companies. Asbury is recognized as one of America’s
Fastest Growing Companies 2024 by the Financial Times, America’s
Greatest Workplaces 2023 by Newsweek, as well as one of the Best
Companies to Work For in the Retailers industry by U.S. News &
World Report.
For additional information, visit www.asburyauto.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are statements other than
historical fact, and may include statements relating to goals,
plans, objectives, beliefs, expectations and assumptions with
respect to the lawsuit filed by Asbury against the FTC, the lawsuit
filed by the FTC against Asbury and Asbury’s intentions with
respect to challenging such lawsuit and the potential impact of
such lawsuit, projections regarding Asbury's financial position,
liquidity, results of operations, cash flows, leverage, market
position, the timing and amount of any stock repurchases, and
dealership portfolio, revenue enhancement strategies, operational
improvements, projections regarding the expected benefits of
Clicklane, management’s plans, projections and objectives for
future operations, scale and performance, integration plans and
expected synergies from acquisitions, capital allocation strategy,
business strategy. These statements are based on management's
current expectations and beliefs and involve significant risks and
uncertainties that may cause results to differ materially from
those set forth in the statements. These risks and uncertainties
include, among other things, adverse outcomes with respect to
current and future litigation and other proceedings, including,
without limitation, the lawsuits involving the FTC, our inability
to realize the benefits expected from recently completed
transactions; our inability to promptly and effectively integrate
completed transactions and the diversion of management’s attention
from ongoing business and regular business responsibilities; our
inability to complete future acquisitions or divestitures and the
risks resulting therefrom; any supply chain disruptions impacting
our industry and business, market factors, Asbury's relationships
with, and the financial and operational stability of, vehicle
manufacturers and other suppliers, acts of God, acts of war or
other incidents and the shortage of semiconductor chips and other
components, which may adversely impact supply from vehicle
manufacturers and/or present retail sales challenges; risks
associated with Asbury's indebtedness and our ability to comply
with applicable covenants in our various financing agreements, or
to obtain waivers of these covenants as necessary; risks related to
competition in the automotive retail and service industries,
general economic conditions both nationally and locally,
governmental regulations, legislation, including changes in
automotive state franchise laws, and Asbury's ability to execute
its strategic and operational strategies and initiatives, including
its five-year strategic plan, Asbury's ability to leverage gains
from its dealership portfolio, Asbury's ability to capitalize on
opportunities to repurchase its debt and equity securities or
purchase properties that it currently leases, and Asbury's ability
to stay within its targeted range for capital expenditures. There
can be no guarantees that Asbury's plans for future operations will
be successfully implemented or that they will prove to be
commercially successful.
These and other risk factors that could cause actual results to
differ materially from those expressed or implied in our
forward-looking statements are and will be discussed in Asbury's
filings with the U.S. Securities and Exchange Commission from time
to time, including its most recent annual report on Form 10-K and
any subsequently filed quarterly reports on Form 10-Q. These
forward-looking statements and such risks, uncertainties and other
factors speak only as of the date of this press release. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20241007441892/en/
Investors & Reporters May Contact: Joe Sorice
Manager, Investor Relations (770) 418-8211 ir@asburyauto.com
Asbury Automotive (NYSE:ABG)
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