State Farm, Geico Manipulate Repair Costs, Body Shops Say

Law360, New York (January 8, 2014, 4:07 PM EST) -- A host of automotive body shops on Tuesday alleged in Mississippi federal court that a group of insurance providers, including State Farm Mutual Automobile Insurance Co. and Geico General Insurance Co., of conspiring to manipulate car repair costs in order to reduce their payments.

The suit named 16 separate insurance firms as defendants, but repeatedly alleges that State Farm largely orchestrated the scheme, which the body shops said involves the artificial suppression labor, repair and material costs and the enactment of harsh punitive measures against noncooperating...
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