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Dozens of Florida collision repair companies have filed an amended-complaint against State Farm and dozens of other insurers, which alleges the insurers use their direct repair programs to “illegally control and depress rates and if the shops don’t comply, customers are steered away. The action comes after U.S. District Judge Gregory Presenell ruled their earlier complaint “suffers from a host of problems” and gave them permission to re-plead their case.
A group of Florida collision repair shops have banded together to file an antitrust lawsuit against State Farm and dozens of other insurers, alleging 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. This case has potential implications for the AGRR industry, as independent automotive glass repair shops allege similar issues with third-party administrators (TPAs), which handle automotive glass claims for insurers.