For NASCOURT, things seem to be getting pretty busy once again. After the latest update, where Spire Motorsports countersued Joe Gibbs Racing, yet another team has brought forward its own lawsuit. This time, AM Racing, which unfortunately shut down operations this year, is suing its former partner, Sigma Performance Racing.

According to Sydney Haulenbeek on X, “AM Racing LLC has filed suit against Sigma Performance Services LLC, seeking the return of several unique car chassis and for Sigma to stop using AM Racing’s intellectual property.”

In the lawsuit documents attached in the post, there is a clear mention that the lawsuit is related to their earlier agreement, wherein Sigma had agreed to acquire AM Racing. The subsequent deal would allow SPS to run teams in the O’Reilly Series and the ARCA Menards Series. However, right at the start of this year, AM Racing stated that the deal did not go through.

SPS Racing had tried to extend Ford’s footprint in the NASCAR O’Reilly Series with this merger, which did not take place in either of their favor.

After the parties did not decide to follow up on their agreement, AM Racing decided to continue racing in the O’Reilly Series, running a single full-time entry with Nick Sanchez behind the wheel, backed by Ford Performance Racing.

SPS Racing stuck to ARCA Menards and the ARCA Menards Series East races, where they competed part-time with Ford backing. Daniel Dye, Connor Hall, and Caden Kvapil took turns racing for SPS. For now, neither AM Racing nor SPS Racing has commented on the ongoing lawsuit.

The lawsuit likely stems from confusion and dissatisfaction over their failed merger and the subsequent frustrations after that. Since SPS Racing had made an official statement about supporting AM Racing in their NOAPS regardless of the outcome.

“Recent announcement(s) were made regarding the termination of the SPS planned NASCAR O’Reilly’s Auto Parts Series program participation. While SPS’s participation in this program was halted effective January 28th, 2026, SPS will continue to support the smooth and effective transition of this competition program in full cooperation with AM Racing.”

It only makes things more difficult for the former NASCAR O’Reilly Auto Parts outfit. Only a month ago, they had announced that they were leaving the sport and wouldn’t continue any operations in the NASCAR O’Reilly series.

Why did AM Racing shut down?

AM Racing’s withdrawal from NOAPS is a rather terrible situation considering their history in the sport. The team has worked with the likes of Hailie Deegan, Joey Logano, and Josh Berry over the past few years. In fact, 2025 was their best season, with Harrison Burton finishing in 12th place in the drivers’ championship.

According to Matt Weaver, VP/comp, Matthew Lucas had already been informed by May 16, 2026, that the team had ceased operations and they were being released from their duties.

This news came right after the team decided not to field their only entry at the Rockingham Speedway in March. Surprisingly, they did not give any reason for the same that day. However, it seems that VP Lucas found it difficult to run the team on his own.

He was unable to stabilize the operations of the team. As business activity could not return to normal, he ultimately pulled the plug. It was terrible news for Ford, but a complete disaster for Nick Sanchez, especially.

Sanchez had lost his ride at Big Machine Racing during the off-season and secured a last-minute full-time seat with AM Racing before the start of the season. In his seven starts for the team, he managed to secure them a third-place finish at Atlanta.

A sudden end to one of the top 12 fastest teams shows how difficult it has become to field teams in NASCAR. What happens after this lawsuit won’t certainly be enough to bring them back either.