Scout Litigation Updates

Scout’s efforts to sell directly have been met with litigation in several states.  Currently, there is litigation in Florida, California, Colorado and Virginia.  The Florida and California cases have progressed beyond the initial stage where Scout asked the Courts to dismiss the cases.  In both cases, the Courts have rejected Scout’s arguments and refused to dismiss the cases.  In each decision, the Courts have essentially rejected Scout’s arguments that the activities that Scout is currently engaged in do not rise to the level of dealer-related activity that is regulated under the respective statutes.  In Florida, Scout has appealed the Court’s decision (in particular on jurisdictional grounds) and the parties are awaiting a decision from the appellate court.

It is expected that the litigation will continue for some time in each matter.  While an ultimate decision may not be imminent, it is a positive development that the Courts have refused to dismiss the cases and rejected Scout’s arguments so far.