Franchisees file class-action suit against BP, Retalix

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Franchisees file class-action suit against BP, Retalix


LOS ANGELES -- Law firms SeegerWeiss LLP and Lee Tran & Liang APLC have jointly filed a class action lawsuit against BP West Coast Products LLC, BP Products North America Inc. and Retalix on behalf of owners of BP and ARCO gas station franchises and ampm convenience store franchises.

The suit, filed in the United States District Court for the Northern District of California, charges wrongful and illegal conduct including: BP defendants required all franchisees to install a new centralized point of sale system developed by co-defendant Retalix that is defective, which in turn resulted in substantial damages to the franchisees such as lost operation time, lost revenue, lost or inaccurate inventory, lost receivables and cash and increased operating costs and burdens; BP's illegal manipulation of gas supply and pricing; BP's improper direct control of and/or pricing by third-party vendors; and BP's policy of forcing sale of items and collection of fees for which plaintiffs receive no compensation.

There are more than 1,600 franchised BP and ARCO gas stations and ampm stores across the country, all of whom are part of the proposed class for this lawsuit. The Service Station Franchise Association Inc., which represents a large number of the franchisees, has been instrumental in assisting the plaintiffs in their quest to bring the defendants to justice via this action, the law firms announced.

At press time, BP had no comment on the suit.