A firm that once held the title of fastest-growing company in the Triangle has launched a $5 million breach-of-contract lawsuit at a former partner.
Consolidated Asset Recovery Systems, which for years was recognized for its swift growth in the Triangle, is suing Tricolor Auto Acceptance and its affiliates, claiming it owes millions for vehicles repossessed using its software.
Trucolor, through a spokesperson, declined to comment on the case.
CARS develops software and services to manage the repossession and remarketing of automobiles.
Tricolor provides auto loans to consumers and entered into an agreement with CARS in 2014, giving it access to its platform.
CARS would manage the repossession, transportation and auctioning of vehicles for Tricolor and, according to the lawsuit, Tricolor would pay for CARS’ services on a per-vehicle basis.
While defendants paid CARS’ invoices from 2014 to 2020, they “have systematically failed to pay most of CARS’ invoices from 2020 to present,” the federal lawsuit states.
According to CARS’ lawsuit, Tricolor entities now owe it more than $5 million.
The lawsuit, filed by Christopher Lam of Bradley Arant Boult Cummings, asks for a jury trial and an award of “at least” $5,052,650.98 as well as court costs and other relief.
CARS, founded by Steve Norwood in 2005, was last recognized on TBJ’s Fast 50 list in 2019. At the time, it was the 35th fastest-growing firm in the region with 102 employees. It held the number one slot in 2015.
CARS was acquired by Texas private equity firm Greenridge Investment Partners in 2016.
Norwood left the firm in 2020 and, according to his LinkedIn profile, is now CEO of Primeritus Financial Services, another firm in Greenridge’s portfolio.