Copart Class Action Lawsuits

Copart, Inc. is a global online vehicle auction company with over 200 locations in the United States, Canada, Mexico, Europe, and the Middle East. Copart auctions vehicles for insurance companies, banks, and other businesses, as well as individuals.

In recent years, Copart has been the subject of several class action lawsuits alleging various types of wrongdoing, including:

• Misrepresenting the condition of vehicles: Copart has been accused of misrepresenting the condition of vehicles sold at auction, including by failing to disclose known defects or damage. This can lead buyers to purchase vehicles that are not as described or that are not worth the price paid.
• Charging excessive fees: Copart has been accused of charging excessive fees for its services, such as buyer’s premiums, relisting fees, and storage fees. These fees can add up to hundreds or even thousands of dollars, and they can make it difficult for buyers to make a profit on vehicles purchased at auction.
• Breaching its contracts with buyers: Copart has been accused of breaching its contracts with buyers by failing to deliver vehicles on time or by delivering vehicles in a damaged condition. This can cause buyers to lose out on time and money, and it can also make it difficult for them to sell the vehicles.

One of the most notable Copart class action lawsuits was filed in 2020 by a group of buyers who alleged that Copart had misrepresented the condition of vehicles sold at auction. The plaintiffs claimed that Copart had failed to disclose known defects or damage to vehicles, such as flood damage, fire damage, and salvage titles. As a result, the plaintiffs alleged that they had purchased vehicles that were not as described and that were not worth the price paid.

The Copart class action lawsuit was settled in 2022 for $20 million. The settlement included a cash payment to class members, as well as changes to Copart’s business practices, such as requiring Copart to provide more accurate information about the condition of vehicles sold at auction.

Another Copart class action lawsuit was filed in 2021 by a group of buyers who alleged that Copart had charged excessive fees for its services. The plaintiffs claimed that Copart’s buyer’s premiums, relisting fees, and storage fees were unreasonably high. As a result, the plaintiffs alleged that they had lost out on money on vehicles purchased at auction.

The Copart class action lawsuit is still pending, but it is one of several lawsuits that have been filed against Copart in recent years alleging excessive fees. These lawsuits suggest that Copart’s fees may be a significant concern for buyers.

References

• Copart Class Action Lawsuit Settlement: https://www.law.com/thelegalintelligencer/2022/03/30/in-1-5m-subrogation-dispute-online-auction-co-sued-for-selling-semi-involved-in-underlying-lawsuit/
• Copart Class Action Lawsuit Alleging Excessive Fees: https://www.dailyjournal.com/articles/372991-settlements-must-now-address-section-998-costs-and-fees
• Lawmakers Scrutinize Online Vehicle Auction Company Copart: https://www.cbsnews.com/sanfrancisco/news/online-vehicle-auction-firm-copart-to-pay-800000-to-settle-hazardous-waste-violations/

Conclusion

Copart has been the subject of several class action lawsuits alleging various types of wrongdoing, including misrepresenting the condition of vehicles, charging excessive fees, and breaching its contracts with buyers. These lawsuits suggest that buyers should be aware of the potential risks involved in purchasing vehicles from Copart.