Last Updated: 12:04 PM ET – 1/30/26
Originally reported by Abigail Harrison at Law360 (January 29, 2026). Read the full story →
A NASCAR parts distributor has filed a federal lawsuit accusing Brembo NV of extortion, claiming the Italian brake manufacturer attempted to recover debts from a bankrupt company by pressuring an unrelated business partner.
Essex Parts Services Inc. filed the complaint Tuesday in a North Carolina federal court. The company alleges Brembo disrupted a pending five-year distribution contract with AP Racing Ltd., a Brembo subsidiary, in an attempt to collect nearly $1 million owed by a separate bankrupt entity.
Highlights
- Essex Parts Services accuses Brembo of demanding $350,000 to settle debts owed by TAW Performance LLC, a separate bankrupt company
- The dispute threatens Essex’s exclusive NASCAR Cup Series brake supply relationship with AP Racing, established in 2022
- Brembo allegedly proposed a “fraudulent inventory accounting scheme” involving inflated minimum purchase requirements
- A California bankruptcy court previously denied Brembo’s motion to investigate potential fraudulent transfers after the TAW case closed
Background: Decades of Partnership at Stake
Essex has distributed AP Racing products for decades, establishing the UK-based brake manufacturer as a major NASCAR brand. The partnership deepened in 2022 when AP Racing became the exclusive brake supplier to all NASCAR Cup Series teams under a distribution agreement with Essex.
Brembo has owned AP Racing since 1999. The Italian company ranks among the world’s largest manufacturers of performance automotive brakes and parts.
The TAW Connection
The dispute centers on TAW Performance LLC, a company that held exclusive U.S. distribution rights for Brembo motorcycle brakes beginning in 2014. Richard Martin, Essex’s current majority shareholder, previously held majority ownership in TAW.
According to the complaint, Brembo knew Essex and TAW were separate legal entities with different officers and facilities. The lawsuit alleges Brembo failed to protect TAW’s distribution rights from gray market competition, ultimately leading to TAW’s financial collapse.
TAW agreed to a consent judgment exceeding $969,000 and filed Chapter 7 bankruptcy in California in January 2024.
Alleged Extortion Attempts
Essex claims Brembo’s pressure campaign began in mid-2022 when Brembo’s performance division COO Mario Almondo warned Martin that Essex couldn’t “avoid involvement” if TAW didn’t settle.
The complaint outlines subsequent alleged actions:
- December 2024: Almondo demanded $350,000 from Martin, Essex, or both for claims against TAW
- Proposed scheme: Brembo allegedly requested Essex commit to minimum purchase requirements $250,000 higher annually for five years, with AP Racing attributing the revenue to increased purchases rather than debt repayment
- Contract manipulation: Brembo allegedly reduced a proposed 10-year distribution agreement to five years
Contract Collapse
Martin signed the new five-year contract with AP Racing in December. However, Essex alleges AP Racing never countersigned the agreement.
On January 17, an AP Racing employee allegedly approached an Essex worker at Daytona Beach before an upcoming race and disclosed that AP Racing had not executed the contract. Essex claims this disclosure was intended to “instill fear” and set the stage for Essex’s removal as AP Racing’s partner.
Martin subsequently revoked his signature on the agreement.
Brembo’s Response
Brembo adamantly denies the allegations made by Essex Parts, stating: “The allegations made against our company in this lawsuit are groundless, both factually and legally, and we firmly reject them. The company intends to vigorously defend these baseless claims in court, and take any other appropriate actions in response.”
Legal Proceedings
The case is Essex Parts Services Inc. et al. v. Brembo NV et al., case number 3:26-cv-00072, in the U.S. District Court for the Western District of North Carolina. Peter A. Santos and Seth L. Hudson of Maynard Nexsen PC represent Essex and Martin.
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