Venequip, a Venezuelan company that specializes in mining construction, gas and oil services, has filed a lawsuit seeking over $100 million in damages from CAT and has given the company until the end of July to respond.

According to a July 12 news release, Venequip alleges that CAT engaged in misleading and fraudulent conduct, discriminating against Venequip while favoring other dealers, despite previous assurances to the contrary.

Since its inception in 1927, Venequip served as CAT’s sole authorized distributor in Venezuela, a partnership that lasted nearly a century. However, Venequip claims CAT engaged in a discriminatory pricing scheme, selling products to favored dealers at discounts of up to 40% and allowing it to sell in Venequip’s territory at competitive prices. The lawsuit accuses CAT of concealing its pricing scheme and retaliating when Venequip questioned these practices. CAT allegedly terminated its relationship, refused to sell and discouraged other dealers from doing business with Venequip.

“Unbeknownst to Venequip, CAT’s repeated representations to Venequip that CAT would not undermine Venequip in Venezuela were a lie and its effusive praise of Venequip was designed to lull Venequip into believing that CAT was Venequip’s trusted and committed partner,” the lawsuit states. “CAT’s disloyal, misleading, and fraudulent practices: (a) decimated Venequip’s business, preventing Venequip from selling CAT products and servicing CAT equipment; and (b) harmed consumers of CAT equipment and parts in Venezuela.”

For more information about the lawsuit visit Former Caterpillar Dealer Venequip S.A. Sues Caterpillar for $100 Million in Damages (prnewswire.com).