On March 27, 2024, the United States District Court for the Western District of Kentucky (Bowling Green) issued a judgment stating that Holley Performance Products, Inc. [NYSE: HLLY] SHALL DISGORGE to Specialty Auto Parts U.S.A., Inc. the $2,028,264.19 in net profit it derived from its sales of Ultra Aluminum HP carburetors that were in violation of a 2001 Settlement Agreement reached between Holley and Specialty.
The Court determined that “Holley freely chose to brand the Aluminum Ultra HP carburetor as an ‘HP’ carburetor, as opposed to including it in some other line or coming up with a new name for it,” and that “Holley thus at least recklessly violated the Settlement Agreement, which would support a disgorgement award.”
On March 24, 2025, the Court rejected Holley’s motion to alter or amend this disgorgement judgment. The Court rejected Holley’s arguments that the judgment was erroneous, concluding among other things that “Holley has failed to demonstrate that the Court’s conclusion, which relied on principles of Kentucky law . . ., constituted clear error.” The Court also gave Holley ten days to post a supersedeas bond in the amount of $2,231,090.61, reflecting the original judgment amount and the approximate post-judgment interest, which the Court awarded to Specialty in its most recent order.
The case is captioned Specialty Auto Parts USA, Inc. v. Holley Performance Products, Inc., 17-cv-00147 (U.S. Dist. Ct., W.D. Ky.)
Howard B. Iwrey of Dykema Gossett PLLC served as lead counsel for Specialty Auto Parts U.S.A., Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250331708299/en/
Contacts
Specialty Auto Parts U.S.A., Inc.
Richard Platt
rplatt@proformparts.com