Sparta Commercial Services, Inc. (OTCQB: SRCO) today announced that the United States District Court for the Southern District of New York has upheld the company's right to proceed on its claim for breach of the implied covenant of good faith and fair dealing against the New York branch of DZ Bank, one of the largest banks in Germany.
Sparta's lawsuit against DZ Bank will now continue with discovery regarding Sparta's claim that DZ Bank acted improperly in its dealings with Sparta related to a $25 million revolving credit facility issued by DZ Bank to support Sparta's business of financing and leasing motorcycles and other power sports vehicles. The court dismissed certain other claims Sparta had alleged against DZ Bank related to the revolving credit facility.
Sparta makes no representation about the potential outcome of the lawsuit, and there may be substantial costs incurred as a result of the prosecution of the lawsuit.
About Sparta Commercial Services, Inc.
Sparta Commercial Services, Inc. is a New York-based technology company that has roots in the powersports industry where it had originally focused primarily on providing consumer and municipal financing to powersports, recreation, and auto industries. Through its subsidiary, Specialty Reports, Inc., the Company offers a range of online tools and products that include a Mobile App product for Powersports, Recreational Vehicle, Watercraft, and Auto dealers, that allows the dealers to manage their own custom dealer mobile applications that are made available on multiple platforms such as iPhone, iPod Touch, iPad, Android Mobile, Android Tablet and Kindle Fire, giving consumers access to the dealerships' inventory, sales and service departments, hours, locations, special events and more (www.specialtymobileapps.com); Cyclechex, providing Motorcycle History Reports (www.cyclechex.com); RVChecks providing Recreational Vehicle History Reports (www.rvchecks.com); and CarVINreport, providing Automobile and Light Truck History Reports (www.carvinreport.com). All of the vehicle history reports cited above are designed for consumers and retail dealers as well as for auction houses, insurance companies and banks/finance companies. Sparta continues to administer an ever-growing Municipal Leasing Program for local and/or state agencies throughout the country seeking a better and more economical way to finance their essential equipment needs; from police motorcycles and cruisers, to EMS equipment and busses, to virtually any type of equipment required. Sparta is an innovative and diversified Company dedicated to identifying the needs and interests of its targeted markets, and developing products and services specifically designed to meet those needs and interests now, and well into the future.
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