Gillett Evernham Motorsports announced that it has dropped its suit with Robby Gordon Motorsports over a failed attempt to merge.
GEM sued RGM claiming that the team violated the terms of an agreement that would have sold the RGM Sprint Cup team to GEM for $24 million.
Under the terms of the resolution, the lawsuit will be dropped and the merger will not take place. The teams agreed the misunderstandings and miscommunications led to the failure to merge. They also agreed that both sides acted in good faith throughout the process.
In related GEM story, it is being rumored that the possible GEM/BDR merger has fallen through. As a result, GEM is said to be considering a deal with Chip Ganassi Racing. CGR has been rumored to be considering a deal with Michael Waltrip Racing, but now rumors connect GEM and CGR.
Both sides, however, have denied, or won’t comment on, possible merger plans.