Judge denies NASCAR's request to dismiss the 23XI, FRM lawsuit

Another loss in court for NASCAR today in their legal battle with 23XI Racing and Front Row Motorsports, as Judge Kenneth D. Bell, who is presiding over the case, denied the series' motion for dismissal. 

The judge stated that the teams had "sufficiently alleged one or more plausible antitrust claims" and that it was enough to move forward with the case. His full reasoning: "What is the actual evidence and how does it inform a correct legal conclusion? These questions cannot be determined on motions to dismiss in this action, where Plaintiffs have sufficiently alleged one or more plausible antitrust claims against Defendants within the applicable period of limitations. Instead, the answers must be found when the parties have a full opportunity to pursue discovery of the relevant facts and then at trial, where the jury will be able to weigh the evidence and assess the credibility of the witnesses (unless the case is resolved sooner by the parties or the Court). Therefore, the Court will deny the Defendants' Motion to Dismiss."

Jeffrey Kessler, representing the teams, said the following in reaction to the news: "We are pleased with today’s decision by Judge Bell to deny the Motions to Dismiss and Motion for Bond and look forward to presenting our case at trial." 

Bubba Wallace, 23XI Racing, Columbia Sportswear Company Toyota Camry

Photo by: Danny Hansen / NKP / Motorsport Images

The judge also denied NASCAR's request for the teams to post bond, stating that they "failed to particularly  establish how [NASCAR] will be monetarily harmed." The sanctioning body wanted 23XI and FRM to post a bond that covered all earnings gained from the 2025 Charter Agreement should the teams ultimately lose the lawsuit. The court did leave the door open for NASCAR to still seek damages, but only if they ultimately win the lawsuit. 

In December of last year, the courts ruled in favor of the teams keeping their charters while the lawsuit is ongoing, and forced NASCAR to approve their purchase of a third charter. An appeal by NASCAR to delay parts of the preliminary injunction proved fruitless. 

In this week's hearing, NASCAR argued that the preliminary injunction cannot be correct as "even if the injunction is overturned, they [the teams] are entitled to keep every penny of the many millions that they received only because of the injunction." The teams argued that NASCAR won't be harmed by this, but NASCAR countered by saying any benefits gained (such as using the names and likeness of the teams/drivers) would have been the same if they competed as open teams.

The trial is set to begin on December 1st of this year.