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Mamo owns almost half of the gas stations within the city and the lawsuit alleges that his business agreements with ExxonMobil unfairly eliminate competition from other gasoline wholesalers.
Mamo owns gas stations, sells wholesale gasoline to the station dealers from Exxon, and forces the dealers who run his gas stations to buy Exxon gas from his own company, according to a report by the Washington City Paper. As a result, drivers' chances of lower gas prices are reduced due to the other Exxon wholesalers who could sell to the gas stations being cut out, Nathan alleges.
Mamo will fight the lawsuit, he announced in a statement. “The District of Columbia is targeting distributors for legitimate operating agreements that have been in place for years and that are similar to operating agreements and dealer arrangements in jurisdictions across the country," he said.
Nathan's office investigated Mamo for unfair trade practices in 2011, but elected not to sue, according to the report.