New York, NY., May 13, 2015 -- Sparta Commercial Services, Inc. (OTCQB: SRCO) today announced that the United States District Court for the Southern District of New York has denied DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, New York Branch's ("DZ Bank") motion for summary judgment, allowing the company 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 to trial, scheduled to begin on May 19, 2015, 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 then business of financing and leasing motorcycles and other power sports vehicles.
Sparta makes no representation about the potential outcome of the lawsuit, and there can be no assurance that Sparta will prevail on its claim or against any counterclaim, including as to costs and attorneys' fees, which may be substantial.
About Sparta Commercial Services, Inc.
Sparta Commercial Services, Inc. (http://spartacommercial.com/) is a leader, in developing, managing, and servicing custom mobile apps for dealer networks and businesses, in providing motor vehicle history reporting to dealers and consumers, and offering and administering vehicle and capital lease programs for municipalities.
Sparta's Mobile Applications Division offers two customizable mobile app products specifically designed for vehicles dealers and for small and growing companies.
iMobileApp (http://imobileapp.com/) is the newest mobile app product from Sparta - providing diverse small and growing companies with a customized mobile app for their businesses, at a fraction of the cost of traditional and web marketing.
Specialty Mobile Apps (http://www.specialtymobileapps.com/) is a product that gives vehicle dealers their own branded mobile app. The app allows dealers to stay in contact with their customers and communicate upcoming and ongoing promotions, special events, new and used inventory, and more.
Specialty Reports, Inc., a subsidiary of Sparta Commercial Services, provides detailed used vehicle title history reports to dealers, insurance companies, credit unions, etc., as well as to consumers. Specialty Reports (http://specialtyreportsinc.com/) is trusted by industry professionals to provide buyers accurate, timely, and thorough title history reports. The Company targets four motor vehicle markets through https://www.carvinreport.com/ (automobiles and light trucks), https://cyclechex.com/ (motorcycles),https://www.rvchecks.com/ (recreational vehicles) and http://truckchex.com/ (commercial trucks).
Sparta's Municipal Leasing Division (http://spartamunicipal.com/) offers and administers a specialized municipal leasing program for local and state agencies. The Company is dedicated to serving jurisdictions with small and growing vehicle fleets who seek 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 a municipality requires. The Municipal Leasing Division also works with larger jurisdictions to provide competitive leasing facilities for specific segments of their fleet portfolio.
Sandra L. Ahman
Sparta Commercial Services, Inc.
This news release contains forward-looking information within the meaning of federal securities regulations. These forward-looking statements include statements related to the possible outcome of this case or any other litigation. These forward-looking statements involve risks and uncertainties, including those described from time to time in the Company's filings with the Securities and Exchange Commission (SEC) that could cause the actual results to differ materially from those anticipated by these forward-looking statements. In particular, the ultimate outcome of this case or any litigation is always uncertain and may differ materially from what is currently anticipated. The Company assumes no obligation to update any forward-looking information contained in this press release.