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US: Panel consolidates auto shop antitrust suit against insurers

By  |  August 12, 2014

A US Judicial Panel on Multidistrict Litigation has ruled that lawsuits filed in five states against car insurance companies alleging antitrust violations can be consolidated.

The suits, filed by collision repair shops, were lodged in Mississippi, Indiana, Florida, Utah and Tennessee. The case will be heard in Florida, though some plaintiffs expressed disappointment at the choice in venue.

Still, the auto shops said they have faith in the judiciary system to bring a successful case.

Several insurance companies are accused by auto shop firms of unfair business practices in dealing with the shops. Among the claims includes allegations that the insurance companies refuse to pay for certain services or parts unless it is in their financial interest to do so.

Earlier last month dozens of shops filed a similar case in Louisiana, and plaintiffs said they expect more states to join.

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