Nucar Nissan of Allentown and Nucar Chrysler-Dodge-Jeep-Ram of Allentown, operate under the Nucar Family of Dealerships brand.
The purchaser of two Allentown, Pennsylvania car dealerships has filed a federal lawsuit seeking to unwind the transaction, alleging that the seller provided misleading financial information during the sale process.
The lawsuit was filed by DCD Automotive Holdings, whose principals are Dan Dagesse and Christopher Dagesse. The defendants include David Rothrock, his related corporate entities, and associated individuals, according to court filings.
The case arises from a May 2024 transaction in which DCD Automotive acquired Nissan and Chrysler-Dodge-Jeep-Ram dealerships in Allentown from Rothrock. The stores now operate as Nucar Nissan of Allentown and Nucar Chrysler-Dodge-Jeep-Ram of Allentown, under the Nucar Family of Dealerships brand.
Allegations Outlined in Court Filings
According to the complaint, an unidentified broker contacted DCD Automotive in October 2023 regarding a potential acquisition. After executing a nondisclosure agreement, DCD was provided with a pitch deck containing revenue, expense, and adjusted profit figures for the dealerships.
The complaint states that the pitch materials reflected adjusted profits exceeding $1 million annually from 2020 through the first three quarters of 2023. The materials also included information regarding vehicle “pack” adjustments, a standard dealership accounting practice used to allocate overhead expenses.
Court filings further allege that, at DCD Automotive’s request, Rothrock provided additional information explaining how pack-related revenue and expenses were reflected in the dealerships’ financial statements.
DCD Automotive alleges that, after closing the transaction, the dealerships’ financial performance differed materially from the projections provided during the sale process. The complaint states that a subsequent forensic review identified what DCD characterizes as overstatements of income, resulting in substantial financial losses.
Procedural Status of the Case
The lawsuit was filed in July 2025 in the U.S. District Court for the Eastern District of Pennsylvania and amended in December 2025.
In a December 8 ruling, Joseph Leeson Jr. denied a motion by the defendants to dismiss the case. In his decision, the judge concluded that DCD Automotive had sufficiently pleaded its breach-of-contract claim and that most of its fraud-related claims could proceed at this stage of the litigation. The court also granted DCD permission to amend its complaint to further allege that it reasonably relied on the financial representations when entering into the transaction. An amended complaint was filed on December 29.
DCD Automotive is seeking rescission of the buy-sell agreement, as well as damages related to its breach-of-contract and fraud-based claims.
Attorneys for DCD Automotive declined to comment on the pending litigation. Counsel for Rothrock did not respond to requests for comment.
The allegations set forth in the lawsuit have not been adjudicated, and the case remains ongoing.