IndyCar News: Alex Palou and McLaren set for $30 MILLION lawsuit showdown as fresh update emerges

A composite image of Zak Brown and Alex Palou — Photo: © IMAGO

IndyCar

Palou and McLaren set for $30 MILLION lawsuit showdown as fresh update emerges

McLaren sued the IndyCar star in October 2023

Simmey Hannifin Donaldson

Monday 27 January 2025 23:00

Three-time IndyCar champion Alex Palou is set for a showdown with McLaren this week amid the team's ongoing lawsuit against him.

The saga began after Palou had signed to join the team in 2023, which as it turned out, had put him in breach of his Chip Ganassi Racing contract.

After mediation, the move was deferred until 2024, only for Palou to back out towards the back end of the 2023 campaign. Later in a court document, he would reveal this was due to losing trust and confidence that the team supported his ambition to race in F1.

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That revelation, of course, came after McLaren had decided to take the matter to court. The team announced that they were suing Palou back in October 2023 and are said to be seeking at least $30 million in damages.

McLaren are involved in a lawsuit against Alex Palou

Alex Palou McLaren lawsuit latest

According to AP, the damages that McLaren are seeking are regarding a host of issues, including the advance the team paid Palou on his salary, money spent on his F1 development, and the recovery of financial losses from sponsors and partners.

Alex Palou is a three-time IndyCar champion

The showdown between McLaren and Palou is reportedly set for Tuesday although it remains to be seen what progress will be made.

This comes fresh off the back of his 24 Hours of Daytona drive this past weekend where he and his Acura Meyer Shank Racing team finished 15th in the GTP category.

It is likely an unwelcomed distraction for both sides ahead of the new IndyCar season.

The 2025 campaign is now not too far in the distance, with the season-opening Grand Prix of St Petersburg set for March 2nd.

McLaren F1 Alex Palou Chip Ganassi Racing