Man, bad timing for both parties. Way to kick GM when it’s already down. And doesn’t Dando know that the definition of bankruptcy = no cash to throw down for lawsuits brought on by alt-rock bands formed back in 1986 and named after little round, sweet and sour yellow candies?

Dando has a beef with a TV campaign ad promoting a 2008 Memorial Day sale at national Chevrolets dealers. The singer/guitarist claims GM violated Dando’s copyright by re-recording the band’s 1992 tune “It’s a Shame About Ray,” the title track from the Lemonheads’ fifth studio album, as the jingle in the background of the Chevy commercial.

The suit, filed in federal court, also pointed a finger at licensing firm Asche & Spencer music.

Lemonheads are set to release its ninth studio album, Varshons, June 23 on The Ends Records. Ironically enough, Varshons is an album of covers including tracks by G.G. Allin, Wire, Leonard Cohen and Linda Perry. Guest vocalists include actress Liv Tyler and model Kate Moss.

Check out the Chevy commercial below.

Click here to check out the Lemonheads’ tune on the band’s MySpace page.

What do you think? Did GM rip off “It’s a Shame About Ray”?