Denny Hamlin and 23XI Racing filed an antitrust lawsuit against NASCAR around late 2024, arguing that NASCAR’s charter system and related practices violate antitrust laws and limit competition. NASCAR has responded by defending the legality of its business model and expressing confidence in its processes, including pursuing a potential settlement but also preparing for trial if needed. The dispute has centered on whether NASCAR’s control over charters, revenue sharing, and access to races constitutes an unlawful monopoly or restraint of trade. What’s happening now (as of late 2025):

• Legal posture: The case remains unresolved, with ongoing negotiations and mediation efforts reported by both sides. There have been public statements that settlement discussions are being pursued, but no final agreement has been announced. This status is consistent with attempts to avoid a lengthy trial while preserving the sport’s structure.

• Impact on teams and racing: The lawsuit has created heightened attention around how NASCAR’s charter system operates and how revenues are allocated. The plaintiffs—23XI Racing and Front Row Motorsports—argue that the current framework harms competition and can threaten smaller teams, while NASCAR argues the system provides stability and fair competition under transparent rules.

• Public sentiment and governance: Officials have emphasized transparency and enforcement standards in officiating, and there have been statements asserting that decisions are made based on data and rules, not personal relationships. This framing is intended to reassure fans and teams that outcomes are not biased by ownership interests.

Direct answer to your question:

• The primary reason Denny Hamlin and 23XI Racing are suing NASCAR is a claim that NASCAR’s charter system and related business practices constitute antitrust violations by limiting competition and controlling access and revenues in a way that harms teams, especially smaller ones. NASCAR denies these claims, maintains the legality and transparency of its framework, and has signaled ongoing settlement discussions while preparing for possible trial if no settlement is reached.