Eleventh Circuit Reinstates Price-Fixing Lawsuit Against Auto Insurers
The auto body shops allege the insurance companies steer policyholders away from shops that charge higher rates.
September 11, 2017 at 03:37 PM
4 minute read
Auto body shops claiming insurance companies unfairly depress repair prices won a key reversal in federal appellate court.
The U.S. Court of Appeals for the Eleventh Circuit reinstated antitrust multidistrict litigation Thursday that claims State Farm and at least nine other insurers teamed up to set an arbitrary reimbursement rate for repairs.
The body shops also allege the insurance companies steer policyholders away from shops that charge a higher rate. The practice amounts to illegal price-fixing and tortious business interference, the shops claim.
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