CA-Based Insurance Company to Pay $1.1M to Settle Delayed Claims Investigations

Alliance United Insurance faced a civil suit in Los Angeles and Ventura counties, alleging it frequently failed to respond promptly to claims.

Written by Autobody News Staff
PublishedNov. 2, 2023

Alliance United Insurance, a Los Angeles-based auto and casualty insurance provider, agreed to a $1.1 million settlement following allegations of inadequate and delayed investigations into auto accident claims, Los Angeles County District Attorney George Gascón

Former Nikola CEO Ordered to Pay $165M in Damages

An arbitration panel determined Trevor Milton owes his former company for costs and damages it incurred due to his controversial actions.

Written by Simon Alvarez, Teslarati
Published Oct. 25, 2023

A regulatory filing from Nikolarevealed former CEO and founder Trevor Milton has been ordered to pay the company about $165 million in damages. The update appears to have been appreciated by investors, as NKLA stock ended the day up 8.9%.
 
Nikola said an arbitration panel in New York determined Oct. 20 the company was due the funds for costs and damages it incurred due to its previous CEO’s controversial

Colorado Auto Body Shop Sued by Customer for Taking Too Long to Repair Car

StormWise Automotive Hail Repair took three times longer than it originally quoted to fix hail damage.

Written by Autobody News Staff
Published Oct. 17, 2023

A Lakewood, CO, auto body shop is facing a lawsuit from a former customer for taking three months to fix her vehicle after it was damaged by hail.

Shirley Dale took her HondaCR-V to StormWise Automotive Hail Repair on July 11 for the repairs. The shop told her it would take four weeks, but 12 weeks later, she still didn’t have her SUV. She finally got it back Oct. 4, the day after Denver7 Investigates aired a news story

NC Man Sentenced for Stealing IDs to Buy $1M in Vehicles

Basilio Rafael Garcia used victims' Social Security cards and birth certificates to buy dirt bikes, SUVs and more from dealerships in North Carolina.

Written by Autobody News Staff
Published Oct. 10, 2023

Basilio Rafael Garcia, of Raleigh, NC, was sentenced Oct. 5 to 54 months in prison and three years of supervised release for conspiring with others to use the personal identifying information of Puerto Rico residents to finance more than $1 million worth of vehicles and watercraft from dealerships in North Carolina. 

Garcia pleaded guilty May 11 to conspiracy and aggravated identity theft.

Garcia

Tesla Owners' Lawsuit Shifted to Arbitration in Recent California Ruling

Four Tesla owners wanted to bring a class action lawsuit, but a judge ruled they agreed to arbitrate any legal claims when they purchased cars on the brand's website.

Written by Suvrat Kothari, InsideEVs
Published Oct. 3, 2023

A California judge has diverted a class action lawsuit brought by a group of Teslaowners to individual arbitration. The Austin-based automaker is the subject of several ongoing trials and investigations over the Autopilot driver assistance feature, but this particular case will no longer be handled by the court.

U.S. District Judge Haywood Gilliam in Oakland,

State Farm Asks for Steering Lawsuit in Maryland to Be Dismissed

Written by Autobody News Staff
Published Oct. 3, 2023

On Sept. 27, State Farm filed a motion to dismiss the lawsuit brought against it earlier this year by Total Recon Auto Center in Rockville, MD, which claims the auto insurance giant is steering Teslacustomers away by intentionally giving its insureds false information.

A report from GlassBytes.com said in the lawsuit filed in mid-August in a U.S. District Court in Maryland, Total Recon claimed State Farm initially agrees to pay the auto body shop’s Tesla labor rate of $50 an hour, but then “steers” away its customer so they don’t have to pay out of pocket the

Massachusetts Judge Says Prepaid Vehicle Maintenance Plans Not Subject to State Dealer Statute

Written by Dallin Wilson, Seyfarth Shaw LLP
Published Sept. 12, 2023

A Massachusetts federal court judge has ruled an OEM-branded prepaid vehicle maintenance plan sold and administered by a third-party to auto dealers is not subject to the Massachusetts Motor Vehicle Dealer Act, and therefore dealers are not entitled to receive retail labor rates for work performed under the plan. 

In Colony Place South, Inc. v. Volvo Car USA LLC, two Massachusetts Volvo dealers alleged Volvo, its captive finance company (Volvo Financial), and a third-party administrator (FWS) violated the

Chicago Sues Hyundai, Kia Over Steep Rise in Vehicle Thefts

Written by Brad Anderson, CarScoops
Published Sept. 5, 2023

The City of Chicago has sued both Hyundaiand Kia in response to the car theft crisis city officials say has been fueled by vehicles from the South Korean car manufacturers.

The lawsuit was filed in the Circuit Court of Cook County and notes that Kia Corporation, Kia America, Hyundai Motor Company and Hyundai Motor America failed to equip most cars sold in the U.S. between 2011 and 2022 with immobilizers. The City of Chicago is asking the court to hit the car manufacturers with fines, issue an injunction to prevent them from advertising their cars as being

New Mexico Woman Sentenced to 2 Years for Stealing from Auto Body Shop Employer

PublishedAug. 24, 2023

Christina Joyner, 48, of Rio Rancho, NM, was sentenced to 24 months in prison and ordered to pay more than $2 million in restitution to her former employer, after she pled guilty to wire fraud on Sept. 2, 2022.

Alexander M.M. Uballez, U.S. Attorney for the District of New Mexico, announced the sentence Aug. 22.

According to court records, from approximately July 2014 through September 2021, Joyner used her position as bookkeeper for Quanz Motor Car Company, doing business as Quanz Auto Body, to defraud the company of more than $2

2 Ex-Tesla Employees Face Legal Action for Customer Data Leak

Written by Simon Alvarez, Teslarati
Published Aug. 22, 2023

Two former Teslaemployees are currently facing a lawsuit filed by the EV maker over the leak of the “Tesla Files” earlier this year. The leaked data reportedly includes information---such as social security numbers and other personal identifying information---of more than 75,000 individuals.

Tesla outlined its response to the issue in an advisory notice published by the Maine Attorney General’s Office. The letter included a background into the issue, as well as the steps the company has taken to address the leak. 

As noted by Tesla, it was informed by German media

Lordstown Motors Agrees to Settle Trade Secret Lawsuit

Written by Ron Selak Jr., Tribune Chronicle
Published Aug. 18, 2023

Lordstown Motors Corp. has agreed to pay $40 million to Karma Automotive LLC to settle a lawsuit that claims Lordstown Motors stole trade secrets and plundered employees from the California-based auto company.

The proposed agreement, which needs approval from a U.S. bankruptcy court judge in Delaware, calls for Lordstown Motors to pay Karma a one-time royalty payment of $5 million, according to the proposal filed Aug. 15 with the court.

The settlement “represents an important step” in Lordstown Motors’ effort to “maximize value” as it navigates

Hyundai, Kia, Genesis Hit with Class-Action Suit Over Faulty Charging Ports

Written by Iulian Dnistran, InsideEVs
Published Aug. 4, 2023

Owners of all-electric vehicles sold by Hyundai, Kia and Genesishave filed a nationwide class-action lawsuit against the car manufacturers, claiming certain models feature defective charging ports that can lead to longer than advertised charging times or even a failure to charge, potentially leaving users stranded.

The suit was filed in late July with the U.S. District Court for the Central District of California and alleges the automakers advertised vehicle charging times between five to seven hours, depending on vehicle make, with the use of a

Tesla, Rivian Head to Court in NDA Battle

Written by Joey Klender, Teslarati
Published Aug. 2, 2023

Teslais heading to court against former employees who joined rival automaker Rivianin a lawsuit claiming they breached non-disclosure agreements (NDAs) related to trade secrets.

On Aug. 2, the former Tesla and now Rivian employees attempted to have the suit thrown out via a summary adjudication ruling. However, a state court judge tentatively denied their request, so the lawsuit will be going forward.

The judge did grant the employees’ request for a ruling on Tesla's claim they accessed company computers illegally to copy and steal important data, according

State Farm Ordered to Pay $277K to TX Policyholder

PublishedJuly 11, 2023

In June, a jury in Rusk County District Court in Texas found State Farm had “knowingly or intentionally engaged in unfair and deceptive acts or practices” when it undervalued and then totaled a policyholder’s pickup truck in 2020, the Auto Body Association of Texas (ABAT) said.

Joseph Collinshad taken his hail-damaged ToyotaTacoma to Burl’s Collision Center in Henderson, TX, wanting the truck repaired. Instead, State Farm decided it was a total loss. 

In Texas, to declare a total loss, the cost to repair the vehicle must exceed 100% of the vehicle’s cash value. The shop owner,

USAA Settles Georgia Class Action on Underpaid Taxes in Auto Claims

Written by Insurance Journal Staff Reports
Published July 3, 2023

A federal judge in Georgia has given preliminary approval to a $2.3 million settlement in a class-action lawsuit that charged USAA Casualty Insurance Co. with underpaying for taxes on totaled vehicles.

“The Court finds, subject to the final fairness hearing … that the settlement agreement is fundamentally fair, adequate and reasonable,” U.S. District Judge Leigh Martin May wrote in the order in June.

The final hearing has been scheduled for Dec. 13.

Some 9,000 Georgia policyholders joined the suit, one of several class actions

Tesla Driver in Fatal Model S Crash in CA Gets Probation

Written by Simon Alvarez, Teslarati
Published July 3, 2023

The driver of a Teslainvolved in a crash in California in 2019 that caused the deaths of two people in another car has been sentenced to two years of probation, after pleading no contest to two counts of vehicular manslaughter. 

The case is significant as it is believed to be the first felony prosecution in the U.S. involving a driver who was using a driver-assist system like Tesla's Autopilot. 

At a preliminary hearing in March 2022, prosecutors said Kevin George Aziz Riad was driving the Model S when it ran a red light at Vermont Avenue in Gardena, CA,

Lordstown Motors Files for Bankruptcy, Sues Foxconn for ‘Bad Faith’

Written by Iulian Dnistran, InsideEVs
Published June 27, 2023

Ohio-based Lordstown Motors, the maker of the Endurance all-electric pickup truck, has filed for Chapter 11 bankruptcy and is looking for a new owner, the company announced June 27. Furthermore, the startup has filed a lawsuit against its main investor, Foxconn, claiming that the technology company committed fraud and consistently failed to live up to its commercial and financial commitments.

Late the previous week, it was reported that ex-CEO and founder of Lordstown Motors Stephen Burns ...

Tesla Direct Sales Lawsuit Thrown Out in Louisiana

Written by Joey Klender, Teslarati
Published June 19, 2023

A federal court on June 16 dismissed Tesla's lawsuit against the State of Louisiana, aimed at enabling direct sales of vehicles.

Tesla has operated with a direct-to-consumer sales model, which fixes prices on vehicles unless the automaker adjusts them. It eliminates the process of bargaining with salespeople at dealerships and gives every buyer the same price, getting rid of what most consumers say is one of the most stressful parts of car buying.

In numerous states, Tesla is allowed to operate this model. Legacy automakers have fought against the company’s ability to do so because they

CT Man Admits Stealing and Selling Catalytic Converters

PublishedJune 14, 2023

Roberto Alicea, 31, of New Britain, CT, pleaded guilty June 13 before U.S. District Judge Sarala V. Nagala in Hartford, CT, to offenses related to his participation in a stolen catalytic converter trafficking ring, announced Vanessa Roberts Avery, U.S. attorney for the District of Connecticut.

According to court documents and statements made in court, law enforcement has been investigating the theft of catalytic converters from motor vehicles across Connecticut. A catalytic converter contains precious metals, can easily be removed from its vehicle, and is difficult to trace, making it a

Missouri Man Pleads Guilty to $1.1 Million Insurance Fraud Conspiracy

PublishedJune 14, 2023

A Kansas City, MO, man who formerly lived in Columbia, MO, pleaded guilty in federal court to his role in a $1.1 million insurance fraud conspiracy that involved false claims of injuries suffered in car accidents, as well as to his role in a conspiracy to fraudulently obtain COVID-19 relief benefits.

Lawrence Courtney Lawhorn, 35, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. on June 8 to the charges contained in two separate federal indictments.

In the first indictment, Lawhorn pleaded guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to

NHTSA Tells Automakers Not to Comply with Massachusetts’ Right to Repair Law

PublishedJune 14, 2023

The National Highway and Transportation Safety Authority (NHTSA) on June 13 sent a letter to 22 automakers, telling them not to comply with a Right to Repair law recently enacted in Massachusetts, citing "significant safety concerns."

"While NHTSA has stressed that it is important for consumers to continue to have the ability to choose where to have their vehicles serviced and repaired, consumers must be afforded choice in a manner that does not pose an unreasonable risk to motor vehicle safety," the NHTSA said in the letter.

The law requires automakers to allow access to their vehicles' data, so owners can get

Lordstown Planning to Bring Litigation Against Foxconn

Written by Joey Klender, Teslarati
Published June 9, 2023

Lordstown Motors has never had a smooth road, battling money issues, production bottlenecks and other issues, until it was saved by Foxconnin 2021. However, the EV startup is now planning to move forward with litigation against its lifeline in relation to Foxconn’s allegations of a potential breach of contract.

In May, Lordstown filed an 8-K with the SEC stating it received a letter from Foxconn in late April, accusing the automaker of breaching its investment agreement “due to its previously disclosed receipt of a notice from the Nasdaq Stock Market LLC indicating that the company

State Farm Facing Class Action Lawsuit Over Luxury Vehicle Repairs

By Mika Pangilinan, Insurance Business Magazine
Published June 9, 2023

State Farm has been hit with a class action lawsuit over allegations that it refused to cover the cost of repairs for luxury vehicles.

Filed in Broward County in Florida on May 18, the lawsuit stems from an incident involving Assaf and Ada Sasson, who owned an all-electric 2022 PorscheTaycan insured with State Farm for more than $100,000.

The Sassons’ vehicle was damaged in a May 2022 collision, which prompted them to seek repair services.

The vehicle was taken to a Porsche dealership and was then referred

New York City Sues Hyundai, Kia Over Easy-to-Steal Cars

Written by Thanos Pappas, CarScoops
Published June 7, 2023

A new development unfolded in the ongoing Hyundai and Kiavehicle theft controversy June 6, as New York City filed a lawsuit against the two Korean automakers, accusing them of negligence.

The complaint lodged in a Manhattan federal court depicts the absence of immobilizers in specific Hyundai and Kia models as being “exceptionally rare” within the automotive industry. It asserts this deficiency has “unleashed a wave of vehicle theft, rampant criminal activities, reckless driving and public endangerment.”

This legal action seeks unspecified compensatory damages and

CA Man Pleads Guilty to Stealing Identity of VA Auto Shop Owner

Published June 1, 2023

A Los Angeles, CA, man pleaded guilty May 23 to fraud and identity theft charges in connection with stealing the identity of the owner of a Richmond, VA, auto shop, Lotsey & Hardy Tire Company.

According to court documents, around January 2022, Daniel Cruz, 30, obtained the owner’s personal information and used that information to take over the auto shop and its owner’s accounting software, bank accounts, email addresses and phone numbers.

Through approximately February 2023, armed with this sensitive information, Cruz re-routed calls placed to Lotsey & Hardy to his own phone, transferred

Judge Denies Automakers' Request to Block Right to Repair Law in MA

PublishedMay 31, 2023

Massachusetts' Right to Repair Law will go into effect June 1, after a federal judge on May 30 denied a motion by an automaker-backed trade group to block it until a final decision has been issued in a case brought by the trade group after state voters approved the law in 2020.

The trade group, the Alliance for Automotive Innovation, had filed the motion May 25 asking U.S. District Judge Douglas Woodlock to stop Massachusetts Attorney General Andrea Joy Campbell from enforcing the Right to Repair law. Campbell announced in March she would take action to implement the law beginning June 1,

Automakers Seek to Block Enforcement of MA Right to Repair Law 

PublishedMay 30, 2023

The Alliance for Automotive Innovation, a trade group representing automakers, on May 26 asked a federal judge to stop Massachusetts Attorney General Andrea Joy Campbell from enforcing a Right to Repair law originally approved by the state's voters in November 2020.

Campbell ...

Judge Calls NY Auto Body Shop Embezzler ‘Unfixable’ at Sentencing

PublishedMay 25, 2023

A woman with a criminal history of embezzling money was sent back to prison by Dutchess County Court Judge Edward McLoughlin.

Suzanne Whitman pled guilty to embezzling more than $700,000 from Fishkill Auto Body in Beacon, NY, where she was the bookkeeper. In an intricate scheme involving the manipulation of entries into the accounting software, Whitman admitted she stole money from the company between December 2019 and May 2022.

Whitman was also sentenced to prison for a grand larceny charge stemming to a mortgage fraud indictment that charged her and Robert

Hyundai, Kia Resolve Class Action Lawsuit Brought in Response to Thefts

PublishedMay 18, 2023

Hyundai Motor America and Kia America, Inc. on May 18 announced they have entered into an agreement to resolve class action litigation with owners of certain Hyundai and Kia vehicles without push-button ignitions and immobilizing anti-theft devices.

The agreement, which could be valued at approximately $200 million depending on how many customers elect to participate, will provide cash compensation for customers who incurred theft-related vehicle losses or damage not covered by insurance, in addition to reimbursement for insurance deductibles, increased insurance premiums and other theft-related

Tesla Accused of Race-Based Discrimination, Retaliation by Former HR Manager

Written by Simon Alvarez, Teslarati
Published May 11, 2023

Teslais currently facing a new race-based discrimination lawsuit, this time from a former human resources manager at the Fremont Factory in California. The lawsuit was filed in the U.S. District Court in San Francisco.

The plaintiff in the case, Karen Draper, 47, is claiming she was terminated for refusing to unlawfully fire a Latina employee who was targeted by a White supervisor. Draper, an African-American, was hired in February 2022 to manage a team of HR personnel at Tesla’s Fremont factory.

Per the complaint, Draper faced issues seven