Thursday, 04 September 2014 00:00

K & M Collision Added to RICO Case Against Insurers

Click here to download the PDF version of this article.

K and M Collision LLC of Hickory, NC, has been included as a plaintiff in a lawsuit filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) against seven major insurance carriers and their affiliates. The suit, originally filed in an Illinois district court on April 30 , accuses State Farm, Allstate, GEICO, Progressive, Farmers, Liberty Mutual, Nationwide, and many of their respective subsidiaries, for short pays and conspiracy to establish “an artificial market value for collision repairs.”


Kevin Michael Bradshaw, VP of Operations at K and M Collision LLC, says, “I think the lawsuit will uncover and prove what many shops throughout the country have known for years, that the insurance companies are refusing to pay for proper repairs, and are using illegal methods to suppress the market rate.”

This is the latest in a series of actions taken by body shops throughout the country in an effort to push back against insurance company tactics that they believe to be unlawful. The Mississippi Collision Repair Association filed to block State Farm’s PartsTrader parts procurement mandate in the summer of 2013; a Tennessee body shop filed suit against Progressive for steering and shortpays in November of 2013, and Ray Gunder has filed suit to block State Farm’s PartsTrader in Florida.


Lee Emmons


AP Media

5397 Enterprise St

Sykesville, MD 21784

(443) 900-2384


Read 1513 times