Toyota Motor Credit Corporation is suing Stephen Cadillac GMC Inc., a Bristol, Connecticut, dealership, for roughly $5.2 million, alleging the business sold dozens of vehicles from its lot without repaying the lender that financed the inventory. The Stephen Cadillac GMC lawsuit was filed in April 2026 in federal court in Connecticut and also names dealership principal Stephen J. Barberino Jr. and guarantor Mary Ann Hall. The Toyota franchise is now closed and up for sale, and the parties are working under court supervision toward a resolution.1CT Post. Bristol Stephen Cadillac GMC Toyota Lawsuit
What the Audit Found
On March 27, 2026, a Toyota Motor Credit representative conducted a floor-plan audit at the dealership’s Farmington Avenue lot in Bristol. The auditor counted 46 vehicles missing, collectively worth about $1.4 million.1CT Post. Bristol Stephen Cadillac GMC Toyota Lawsuit According to Toyota’s complaint, those cars had been sold to consumers, but the dealership never forwarded the proceeds to pay off the loans tied to each vehicle.2Yahoo Finance. Bristol Dealership Sold Cars Without Repaying Lender
The gap widened in the days after the audit. Toyota alleges more vehicles were removed from the lot, bringing the total to 49 and adding more than $75,000 to the shortfall.3AOL. Toyota Sues Dealer for $5.1 Million On March 30, Toyota sent a demand letter to the dealership and to Barberino personally, seeking roughly $5 million. That figure covered the missing vehicles plus an outstanding wholesale loan and a working capital loan.4CT Insider. Bristol Stephen Cadillac GMC Toyota Lawsuit
What Toyota Is Asking the Court For
Toyota Motor Credit filed suit on April 4, 2026, in the U.S. District Court for the District of Connecticut. It seeks minimum damages of about $5.2 million plus accruing interest. The complaint also asks the court to bar the dealership from selling or leasing any remaining collateral and to grant Toyota immediate possession of the dealership’s inventory, equipment, and other property covered by its security interest.1CT Post. Bristol Stephen Cadillac GMC Toyota Lawsuit
No criminal charges or government fraud investigations have been publicly reported. The dispute so far is a civil matter between the lender and the dealership, and there is no public indication of action by the Connecticut DMV or any other state regulator.5WFSB. Stephen Toyota Bristol Closes, Faces $5 Million Lawsuit
The Missed Deadline and Franchise Sale
On May 5, 2026, the court entered a consent order granting Toyota a $5 million prejudgment attachment on real property held by the guarantors. That order set a hard deadline: if the dealership did not repay the full amount by June 1, 2026, Toyota could begin seizing assets, including the land under the dealership itself.6CaseMine. Toyota Motor Credit Corporation v. Stephen Cadillac GMC, Inc., Consent Order7WFSB. Lawsuit: Stephen Toyota Sold Dozens of Cars Without Paying Back Lender
June 1 came and went without full payment. The dealership asked for more time, and the court agreed to stay proceedings through June 30, 2026, so it could finalize a sale of the Toyota franchise and use the proceeds to pay Toyota Motor Credit. While that plays out, the parties have been applying proceeds from the sale of remaining vehicles still under Toyota’s liens toward the outstanding balance. The buyer of the franchise has not been publicly identified, and no sale price has been disclosed.8CT Insider. Bristol Stephen Toyota Franchise Sale
By late May, the lot was nearly empty. A sign on the service entrance says Stephen Toyota is “closed until further notice,” though employees have stayed on-site to answer customer calls.5WFSB. Stephen Toyota Bristol Closes, Faces $5 Million Lawsuit
What It Means If You Bought a Car There
If you bought one of the vehicles at the center of the case, Toyota’s own complaint says you are “not at fault.” Because the cars were on the lot for retail sale, the lawsuit states the consumer transactions carry “no indicia of impropriety.”1CT Post. Bristol Stephen Cadillac GMC Toyota Lawsuit Legal experts quoted in local coverage have made the same point: under Connecticut law, a buyer who purchases a vehicle in good faith from a dealer and receives proper title and registration is generally not responsible for the dealer’s unpaid floor-plan debt.7WFSB. Lawsuit: Stephen Toyota Sold Dozens of Cars Without Paying Back Lender
Service and warranty customers are in a murkier spot. As of early June 2026, neither the dealership nor Toyota USA had publicly announced alternative arrangements for customers with pending service appointments or warranty work at the closed Bristol location.5WFSB. Stephen Toyota Bristol Closes, Faces $5 Million Lawsuit
Where Things Stand
The civil case is active but stayed through June 30, 2026, while the franchise sale is finalized. If the sale closes on schedule and produces enough money to cover the debt, the parties could reach a final settlement. If it does not, Toyota retains the right under the consent order to seize the dealership’s remaining assets, including the Farmington Avenue property.7WFSB. Lawsuit: Stephen Toyota Sold Dozens of Cars Without Paying Back Lender