A North Carolina federal judge on Friday rejected NASCAR’s motion to dismiss an antitrust lawsuit filed by two racing teams that accuse the organization of maintaining a monopoly in stock car racing. U.S. District Judge Kenneth D. Bell ruled that the racing teams had sufficiently alleged antitrust claims, making it premature to dismiss the case at this stage.
In his order, Judge Bell also denied NASCAR’s request for a $36 million bond.
The lawsuit was brought by Front Row Motorsports Inc. and 2311 Racing LLC, a team owned by Michael Jordan. The teams have described NASCAR as a “monopolistic ruler” that imposes restrictive terms on its participants. The plaintiffs have also named NASCAR CEO James France as a co-defendant. They argue that NASCAR’s actions and its control over the racing circuit prevent competition from emerging.
Judge Bell noted that the dispute is framed very differently by the parties involved. The racing teams portray NASCAR as an unfair monopolist, while NASCAR defends its charter system as a mutually beneficial arrangement that has been negotiated with reasonable commercial terms.
