Indianapolis, Indiana -- April 21, 2014 -- A federal lawsuit has been filed by 14 Indiana collision repair facilities against 27 insurers, including State Farm, which has the largest market share in the state.
The suit accuses the insurers of extracting â€œunreasonable and onerousâ€ concessions on vehicle repair costs. The suit seeks unspecified financial damages. The suit follows other similar suits filed earlier this year in Florida and Mississippi. Collision Repair magazine reported on the Florida case here.
The Indiana lawsuit takes particular aim at State Farm, which the suit alleges uses its influential position within the market in â€œspearheading efforts to control and artificially depress damage repair costs.â€
The 34-page suit also alleges that insurers have violated the federal Sherman Act, both in price-fixing and through boycotting tactics.
The 14 shops are seeking unspecified compensatory damages for under-payments as well as damage for lost business opportunities, as well as an injunction that would require insurers to modify their practices.