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Tag Archives: antitrust lawsuit
“Aftermarket Windshield Glass Poses Safety Risk,” Florida Collision Repair Shops Allege in Amended Complaint
A group of Florida collision repair shops have filed a third-amended complaint against State Farm and dozens of other insurers, alleging the insurers use their direct repair programs to illegally control and depress rates and they say if the shops don’t comply, customers are steered away. “With occasional exceptions, defendant insurers write estimates requiring use of aftermarket [such as aftermarket replacement windshields] or salvage parts. Aftermarket and salvage parts are, ostensibly, less expensive than OEM parts and, at least according to defendant insurers, of equal quality to OEM parts. This is simply not true,” attorneys for the collision repair shops allege in the complaint.
A U.S. District judge in Florida has dismissed much of the antitrust lawsuit filed by group of Florida collision repair shops against State Farm and dozens of other insurers without prejudice, meaning attorneys for the repair shops can file an amended complaint. The shops allege the insurers use their direct repair programs to “illegally control and depress” repair rates and if the shops don’t comply, customers are steered away. The judge says more “evidence” is needed to support the allegations.
Attorneys for repair shops that sued State Farm recently responded to the insurer’s request for the U.S. Middle District of Florida Court, Orlando division, to dismiss their antitrust and steering lawsuit, writing, that there is “more than sufficient facts asserted to satisfy the pleading requirements.” The Florida repair shops sued State Farm and dozens of other insurers. The case has potential implications for the AGRR industry, as some automotive glass repair companies allege similar issues with third-party administrators (TPAs), which handle automotive glass claims for insurers.