State Farm Avoids Antitrust Conspiracy Claims by Body Shops

Claims by body shops that State Farm and other insurers conspired against them in violation of federal antitrust law were rejected by the Eleventh Circuit.

The complaints didn’t plausibly allege price-fixing or boycotting conspiracies, the opinion by Judge R. Lanier Anderson said for the full court.

The shops claimed the insurers use direct repair programs to depress the prices they can charge. A DRP is an agreement by the insurers to list a shop of a preferred provider that agrees to charge a market rate established by State Farm.

The established rate is unsound, but State Farm threatens removal from ...