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Polestar’s expected exit from the U.S. market is causing considerable disappointment among owners as well as enthusiasts. However, the biggest setback in this unfolding situation is being felt by the 32 U.S. dealers, many of whom are understandably angry over the collapse of their entire business strategy. Now, a Polestar dealer in New Jersey has taken the Swedish carmaker to court, seeking $25 million, according to a report by Automotive News.

Prestige Imports filed a lawsuit against Polestar in Bergen County Superior Court on August 12, asking for $25 million in damages and alleging that the manufacturer breached New Jersey’s Franchise Practices Act. Under that law, Prestige Imports is reportedly entitled to payment equal to the franchise’s fair market value, along with five years of ongoing parts and warranty support. The dealer group, which runs Prestige Polestar in East Hanover and Polestar Short Hills, claims the manufacturer had been planning its U.S. withdrawal for two years and “maneuvered the [government] into a ban.”

Prestige Imports declined to comment when contacted by Automotive News. Polestar representatives also declined to comment on the lawsuit, but said their “primary focus remains on serving our customers and ensuring they continue to receive the support and service they expect from us.”

The Swedish-origin, Chinese-owned carmaker was officially barred from selling vehicles in the U.S. after the 2027 model year under the Connected Vehicle Rule, which bans vehicles using Chinese and Russian technology. The ban was announced in June, and the manufacturer said in July that it would not appeal the Department of Commerce decision. Soon after Polestar chose not to challenge that ruling, Prestige Imports allegedly received a formal “force majeure” letter stating that the matter was beyond Polestar’s control.

The dealer group treated that letter as a constructive termination of its franchise and argued that the action was unlawful because it came without the required 60-day notice and without good cause. New Jersey law restricts automakers from breaking franchise agreements unless the dealer has failed to meet its obligations; Prestige Imports says it has complied with every requirement, according to Automotive News. In a similar vein, the lawsuit alleges that Polestar did not pursue an exemption that was granted to fellow Geely-owned manufacturer Volvo. That argument was based on a statement made by Senator Bernie Moreno in July.

“Polestar was ruined by Polestar. It wasn’t ruined by the U.S. government,” Senator Moreno told CBT News. “Volvo was given a list of items that they needed to follow in order to comply. It was a very exhaustive and tough list that Volvo had to follow. Volvo chose to follow it. By blaming the Department of Commerce, they think they can bypass lawsuits from dealers and call it a force majeure clause. That’s obviously just a scam on dealers.”

In addition, Sweden’s foreign trade minister, Benjamin Dousa, said that Polestar did not seek assistance in the same way Volvo did. Dousa stated that he was “very involved” in helping Volvo retain its licence, but that Polestar had still not reached out. It remains unclear what conditions Polestar was expected to meet. Either way, the end appears close for Polestar dealerships in the U.S., although at least some franchise holders are not backing down without a fight.