FDD Items 3 & 4 · 2026 filing

Matco Tools litigation history

What Matco Tools disclosed about lawsuits, arbitrations and bankruptcy in the 2026 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.

Items 3 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed: 25; Item 3, as counted in the filing

Largest settlement, franchisor's own cases: None stated

Bankruptcy (Item 4): None; Franchisor, parent, predecessor or officer

Filing year: 2026; Disclosures cover the prior ten years

Extracted from the 2026 Franchise Disclosure Document

Item 3: litigation

Pending actions include a data security class action (Faduie et al.), financing-related case (Jim's Speed Shop), and multiple Matco collection arbitrations against former distributors. Concluded actions include a large California class action settlement (Fleming, paid $13.46M), and various other distributor disputes. One Consent Order from California DFPI (May 2025, $5,000 penalty for franchise disclosure errors).

Item 3 (litigation) · 25 matters disclosed · 9 pending listed

Litigation cases

The franchisor

Pending (9)

Matco Tools Corporation, a Delaware Corporation v. Robert Ryan
pending
Brought by the franchisor · filed 2026 · American Arbitration Association, Atlanta, GA office · 01-26-0000-5437
“… Florida, American Arbitration Association, Atlanta, GA office. Case No. 01-26-0000-5437 (filed February 20”Page 20 of the 2026 FDD, Item 3
Outcome: “Damages Sought: $60,576.69 plus interest plus costs and fees. The arbitration is ongo”
Matco Tools Corporation, a Delaware Corporation v. Sergio Bautista Rodriguez and SBR Quality Tools, LLC
pending
Brought by the franchisor · filed 2026 · American Arbitration Association, Atlanta, GA office · 01-26-0000-1535
“… Illinois, American Arbitration Association, Atlanta, GA office. Case No. 01”Page 20 of the 2026 FDD, Item 3
Outcome: “Damages Sought: $79,628.21 plus interest plus costs and fees. The arbitration is ongo”
Matco Tools Corporation, a Delaware Corporation v. Christopher Johns and Tool Tech LLC
pending
Brought by the franchisor · filed 2025 · American Arbitration Association, Atlanta, GA office · 01-25-0009-4923
“… California, American Arbitration Association, Atlanta, GA office. Case No. 01-25-0”Page 20 of the 2026 FDD, Item 3
Outcome: “Damages Sought: $129,816.66 plus interest plus costs and fees. The arbitration is ong”
Matco Tools Corporation, a Delaware Corporation v. Dennis and Lori Straits and D & L Tools LLC
pending
Brought by the franchisor · filed 2025 · American Arbitration Association, Atlanta, GA office · 01-25-0005-8128
“… Michigan, American Arbitration Association, Atlanta, GA office. Case No. 0”Page 20 of the 2026 FDD, Item 3
Outcome: “Damages Sought: $85,832.33 plus interest plus costs and fees. The arbitration is ongo”
Matco Tools Corporation, a Delaware Corporation v. Jonathan Bevins and AR Tools LLC
pending
Brought by the franchisor · filed 2025 · American Arbitration Association, Atlanta, GA office · 01-25-0009-3495
“… Montana, American Arbitration Association, Atlanta, GA office. Case No. 01-25-0009-34”Page 20 of the 2026 FDD, Item 3
Outcome: “Damages Sought: $90,695.93 plus interest plus costs and fees. The arbitration is ongo”
Matco Tools Corporation, a Delaware Corporation v. Steven Hayward
pending
Brought by the franchisor · filed 2025 · American Arbitration Association, Atlanta, GA office · 01-25-0009-3459
“… Washington, American Arbitration Association, Atlanta, GA office. Case No. 01-25-0009-3459 (filed Decem”Page 20 of the 2026 FDD, Item 3
Outcome: “Damages Sought: $98,577.94 plus interest plus costs and fees. The arbitration is ongo”
Matco Tools Corporation, a Delaware Corporation v. Vladimir Fuentes and 805 Tools LLC
pending
Brought by the franchisor · filed 2025 · American Arbitration Association, Atlanta, GA office · 01-25-0005-4728
“… California, American Arbitration Association, Atlanta, GA office. Case No. 01-25-00”Page 20 of the 2026 FDD, Item 3
Outcome: “Damages Sought: $116,738.93 plus interest plus costs and fees. The arbitration is ongoing.”
Jim’s Speed Shop v. Matco Tools Corporation (2024 refiling)
pending
filed 2024-09-24 · Superior Court of Gwinnett County, Georgia; transferred to U.S. District Court for the Northern District of Georgia · 24-A-08538-10; 1:24-CV-5472-jpb-ccb
“Jim’s Speed Shop v. Matco Tools Corporation, (filed September 24, 2024), Civil Action No. 24-A- 08538-10; transferred to U.S. District Court for the Norther District of G”Page 18 of the 2026 FDD, Item 3
Outcome: “This matter is currently pending and in the discovery proces”
William Faduie, Andrew Munger, Toby Clarkson, and Keston Lewis v. Matco Tools Corporation
pending
Brought by a third party · filed 2023-06-20 · U.S. District Court for the Northern District of Ohio · 5:23-cv-00337
“… Case No.: 5:23-cv-00337, U.S. District Court for the Northern District of Ohio”Page 17 of the 2026 FDD, Item 3
Outcome: “Matco has filed a motion to dismiss the claims, and its motion and all claims are currently pending.” (page 18)

Concluded (6)

Matco Tools Corporation v. William Davis (Arbitration Action) and William Davis & Meghan Stevens v. Matco Tools, Inc., Vontier Corporation, et. al. (State Court Action)
concluded
Brought by the franchisor · filed 2025-02-25 · American Arbitration Association; Superior Court of the State of California, County of San Bernardino · 012500009453; CIVV-2500538
“Matco Tools Corporation v. William Davis, American Arbitration Association, (AAA office location not yet assigned, but it has been requested to be at a California AAA office closest to Apple Valley, C”Page 18 of the 2026 FDD, Item 3
Outcome: “have been collectively resolved, as of March 19, 2026, pursuant to a Confidential Settlement and Release of Claims (the”
Nathaniel Baggs, individually, and on behalf of all others similarly situated, v. Matco Tools Corporation, and Does 1-10
concluded
Brought by a third party · filed 2024-05-16 · United States District Court for the Central District of California · 5:23-CV-00852-SSS (SPx)
“Nathaniel Baggs, individually, and on behalf of all others similarly situated, v. Matco Tools Corporation, a Delaware Corporation, and Does 1-10, inclusive; California, In the United States”Page 22 of the 2026 FDD, Item 3
Outcome: “Matco paid Mr. Baggs a total of $5,000 in cash settlement payments. C.”
John Fleming on behalf of himself and others similarly situated v. Matco Tools Corporation; NMTC, Inc. d/b/a Matco Tools and Fortive Corporation and DOES 1-20
concluded
Brought by a third party · filed 2019-01-28 · United States District Court, Northern District of California, San Jose Division · 5:19-cv-00463-NC
“John Fleming on behalf of himself and others similarly situated v. Matco Tools Corporation, a Delaware Corporation; NMTC, Inc. d/b/a Matco Tools, a Delaware Corporation and Fortive Corporation, a Dela”Page 22 of the 2026 FDD, Item 3
Outcome: “Matco paid a total of $13,462,174.90 in cash settlement payments and $2,346,423.00 in debt”
Matco Tools Corporation v. Cary G. Urquhart, and Cary G. Urquhart v. Matco Tools Corporation (counterclaim)
concluded
Brought by the franchisor · filed 2019-05-06 · United States District Court, For The Northern District of Ohio, Eastern Division · 5:19-cv-10091359; 5:19-cv-01009-SL
“Matco Tools Corporation, a Delaware Corporation v. Cary G. Urquhart, Texas; In The United States District Court, For The Northern District of Ohio, Eastern Division; Civi”Page 22 of the 2026 FDD, Item 3
Outcome: “Urquhart’s counterclaims were dismissed by the Court pursuant to said motio” (page 23)
Richard S. Frerichs and Kimberly Scully Frerichs v. NMTC, Inc. d/b/a Matco Tools
concluded
filed 2018-06-15 · District Court Of The Seventh Judicial District of the State of Idaho, in and for The County of Bonneville · CV-18-3350
“… a Delaware Corporation; Idaho, In The District Court Of The Seventh Judicial District of the State”Page 23 of the 2026 FDD, Item 3
Outcome: “The Court dismissed this suit on October 5, 2018 a”
Daniel Cline, Illinois v. NMTC, Inc., d/b/a Matco Tools, and Matco Tools Corporation v. Daniel Cline and Roberta Cline
concluded
filed 2017-08-08 · American Arbitration Association (Johnston, RI and Atlanta, GA offices) · 01-17-0004-7119; 01-17-0005-0659
“Daniel Cline, Illinois v. NMTC, Inc., d/b/a Matco Tools, a Delaware Corporation, American Arbitration Association, Johnston, RI office. Case No. 01-17-0004-7119 (filed Au”Page 21 of the 2026 FDD, Item 3
Outcome: “Settlement and release documents were signed on January 9, 2018.” (page 22)

This list shows 15 of the 25 matters Item 3 discloses; the rest are in the filing.

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

Disclosure signals that moved the score

How this shows up in the verdict

Multiple litigation exposures including data breach class action, collection actions against distributors, and independent contractor misclassification claims — indicates operational and legal instability

The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.

Before you weigh a lawsuit

How to read Item 3

A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.

Questions worth asking current and former franchisees, using the contact list in Item 20:

Were you, or anyone you know in the system, party to a dispute with the franchisor?
Was it resolved by settlement, arbitration or a court, and on what terms?
Has the number of disputes gone up or down since you signed?

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