ACV Auctions, on Cusp of IPO, Sued Over Alleged Bid Rig Scheme

Two used car dealers hit ACV Auctions Inc.—which is poised to go public this week at a potential value of $3.4 billion—with federal antitrust claims in Buffalo, N.Y., over its alleged concealment of bid rigging by a major user of its automated vehicle auction platform.

ACV turned a blind eye for nearly five years to the fraudulent scheme by Sun Auto Group Inc., a New York dealership chain, and “vigorously discouraged” reports by employees who learned of it, the complaint says.

ACV spokeswoman Kate Clegg told Bloomberg Law Monday the company “is aware of this complaint.”

“ACV intends to defend ...