Palou/McLaren lawsuit heading towards mediation

Two-time NTT IndyCar Series champion Alex Palou has seen some movement in the year-long lawsuit he’s been embroiled in with McLaren Racing.

RACER understands a recent decision in a United Kingdom court, where McLaren’s breach-of-contract claim against Palou that seeks remuneration for advance salary payment and other losses being sought that reach beyond $20 million is being heard, has pushed both sides towards mediation. It’s believed the mediation with McLaren, which is non-binding, could take place in the coming months or early in 2025.

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Unlike arbitration, which calls for a settlement to be reached, mediation does not require either side to accept whatever offers might be proposed to conclude the lawsuit. If mediation is unsuccessful, a trial later in 2025 is expected to resolve the matter.

Reached by RACER, a McLaren representative declined to comment on the matter. Palou’s manager, former IndyCar driver Roger Yasukawa, also declined to speak on the specifics of the court case, but did acknowledge the desire — with Palou close to earning a third championship at this weekend’s Nashville Speedway season finale — to put the lawsuit in the rearview mirror.

“We’re still in legal dispute, so I can't really comment on details, “Yasukawa said. “We have the legal team working on it here in the U.S. and the U.K. side. Obviously, this has been going on for a long time. From my personal perspective, we would like to have this resolved and to be able to celebrate 100 percent after winning the title.

“Our desire is to be able to resolve and move on, and it is our desire, at least on my part, to be able to focus 100 percent on racing and not so much on litigation anymore.”

Palou and his No. 10 Chip Ganassi Racing Honda lead Will Power and his No. 12 Team Penske Chevy by 33 points entering Sunday’s championship-decider.