State Farm Asks Court to Dismiss Mississippi Antitrust Lawsuit Brought by Collision Repair Companies

State Farm and other insurers have asked the U.S. District Court for the Southern District of Mississippi, Northern division, to dismiss allegations of antitrust and steering by more than a dozen collision repair shops in the state. This move comes soon after a Florida judge found an initial complaint in a similar case suffered from a “host of problems” and told those companies to re-plead their case.

Independent automotive glass repair shops allege similar issues with third-party administrators (TPAs), which handle automotive glass claims for insurers, so these cases have potential implications for the AGRR industry.

“Under Fed. R. Civ. P 12(b)(6), plaintiffs’ first-amended complaint fails to state a claim upon which relief can be granted,” State Farms attorneys argue in the Mississippi case.

“[T]he claims asserted against State Farm in plaintiffs’ first-amended complaint fail as a matter of law and State Farm moves for their dismissal with prejudice,” attorneys wrote.

Nationwide, Allstate, Progressive and others followed suit.

“Nationwide further requests, pursuant to Fed. R. Civ. P. I and 15(a)(2), that leave to amend the first-amended complaint as to Nationwide be denied as futile,” Nationwide’s attorneys claim.

In the Florida case, the collision repair companies filed an amended complaint after the judge’s ruling.

The Mississippi judge has not issued any new decision at press time.

To read the complaint filed by Mississippi collision repair companies, click here.

To read State Farm’s motion to dismiss, click here.

To read Nationwide’s motion to dismiss, click here.

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