auto dealer in black and red logo
MenuMENU
SearchSEARCH

LMP Automotive Holdings Sues Two Dealerships for Acquisition Deposits

LMP Automotive Holdings Inc. sues dealership owners in New York and Texas for a combined $3 million in deposits it made to acquire their stores.

June 21, 2022
LMP Automotive Holdings Sues Two Dealerships for Acquisition Deposits

LMP Automotive Holdings Inc. sues dealership owners in New York and Texas for a combined $3 million in deposits it made to acquire their stores.

3 min to read


LMP Automotive Holdings Inc. has sued two dealership owners for combined $3 million in deposits it made to acquire stores and property in New York and Texas. LMP Automotive terminated these deals earlier this year.

An affiliate of the auto retailer filed a lawsuit May 27 in federal court in Albany, N.Y., against James Zappone, Zappone Chrysler-Jeep-Dodge-Ram in Clifton Park, N.Y., Zappone Property Management and an escrow agent. LMP Automotive’s lawsuit seeks the return of the $1 million deposit the company made for the acquisition.

LMP filed a lawsuit two weeks later in federal court in Houston against Houston dealerships Tom Peacock Nissan and Tom Peacock Cadillac, partners David Peacock and Aldo Paret, and affiliated real estate companies. This lawsuit demands the return of $2 million in deposits made to purchase the dealerships and real estate.

LMP acquired its first franchised dealership in 2021, but announced in early 2022, plans to terminate seven pending acquisitions over an inability to secure financing. At that time, he retailer noted plans to explore strategic alternatives, including a possible sale.

LMP has yet to report financial results for the fourth quarter of 2021 and first quarter of 2022. The company reports plans to restate financial results for the first three quarters of 2021.  

Originally, LMP planned to buy the Cadillac and Nissan dealerships from Peacock and Paret for $141 million and the Stellantis brand dealership in New York for $19.2 million. Both deals included real estate.

In the New York suit, LMP alleges the seller "improperly" told the escrow agent that the buyer failed to close by the agreed upon date, demanded the deposit be paid to Zappone and objected to LMP's efforts to have the deposit returned following the March 21 contract termination.

In the Texas lawsuit, LMP reported it could not obtain automaker approval barring the transaction from closing on Feb. 28. LMP reportedly sent the sellers a notice of termination on March 29 and demanded the title company return the deposit.

LMP’s lawsuits also seek reimbursement for lawyer fees, expenses and costs and for interest in the New York case.

The Albany Business Review reported that Brian Carr of Monaco Cooper Lamme & Carr law firm in Albany noted  his client, Zappone, would "vigorously" defend the allegations in LMP's lawsuit and that "we also intend to be asserting our own claims against LMP in the very near future."

LMP has lost deposits in other failed acquisitions. The retailer lost over $2 million in a failed plan to purchase an 85% stake in 10 franchised dealerships in Florida from Alan Jay Automotive Network and $1.5 million in a failed acquisition of five Texas import dealerships.

A Kia dealership in connected has filed a lawsuit against LMP in federal court, seeking $100,000 in deposits held in a failed acquisition. The plaintiffs, Kia of East Hartford and Ash Street Holdings, entered a voluntary motion in April to dismiss the lawsuit after the parties agreed to a settlement. This case closed in May.

 

More Dealer Ops

Auto Dealer Today, Dealer Debrief, 07/15/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 15, 2026

Dealer Debrief: Defection Data & EV Updates

In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Auto Dealer Today, Dealer Debrief, 07/02/2026 with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 2, 2026

Dealer Debrief: Where are you losing customers?

In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 06/25/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJune 26, 2026

Dealer Debrief: Improving Your Inventory Management

In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.

Read More →
group of people standing in a circle holding puzzle pieces together
Dealer OpsJune 1, 2026

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins

A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

What Market Timing Mistakes Mean for Your Reinsurance Program

When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.

Read More →
Ad Loading...
two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

Dealer Ads and the FTC

The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.

Read More →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

Used Autos Supply Dwindles

The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.

Read More →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

Managing Risk Effectively Through Changing Times

The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.

Read More →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →