Judge denies LYNX preliminary injuction on Safelite taking over as third-party admin for State Farm

A federal judge denied a motion on Monday made by LYNX Services asking for a preliminary injunction and temporary restraining order against State Farm and Safelite Group. 

The motion was filed last week and requests the two companies stop using and disclosing what LYNX alleges are its trade secrets and confidential information.

It also asks for Safelite to destroy LYNX’s information and for the court to prevent Safelite from taking over as a third-party administrator for State Farm’s glass claims. 

LYNX’s contract with State Farm expired Tuesday. 

According to the motion, LYNX faces irreparable harm, including the diminution of its trade secrets, reputational damage, and loss of goodwill in the eyes of its customers and prospective customers.  

The judge’s decision to deny the motion was recorded on the docket as a minute entry with no additional details. 

Currently, a majority of documents on the docket are sealed. The judge ordered the parties to file redacted versions of the sealed documents by July 21. 

The Independent Auto Glass Association (IGA) filed an antitrust complaint against Safelite Group with the Office of Policy and Coordination Bureau of Competition in April, following the announcement that State Farm would switch from LYNX to Safelite Solutions. 

“Safelite Solutions is not the same as Safelite Auto Glass, which handles glass repairs,” State Farm said in a letter to glass shops. “While Safelite Auto Glass will remain a participant in our NGP, customers will continue to have the option to choose their preferred glass repair shop.”

According to IGA, Safelite Group, through its subsidiaries including Safelite AutoGlass and Safelite Solutions, wields substantial influence across the auto glass sector. 

“Their acquisition by foreign-owned Belron, the world’s largest vehicle glass company, further amplifies their global reach and market power,” the IGA complaint says. “Safelite Solutions’ role as a TPA over 200 insurance and fleet companies provides them with a pivotal position in directing claims and influencing repair choices.” 

Social media posts made by IPA Tuesday ask auto glass shops to report any issues they experience with State Farm and its recent switch to Safelite Solutions, including steering, payment delays, short-pays, and part authorizations. 

“The Independent Glass Association is actively engaged in formal complaints to the FTC, DOJ, and multiple state officials,” a Facebook post says. “But without your shop’s reports, our ability to continue that fight is limited.”

North Carolina Insurance Commissioner Mike Causey recently told local media that his office has been receiving complaints that insurance companies are using tactics to steer consumers to specific body shops for repairs. Causey told WRAL that, legally, consumers have a right to choose their repair shops, and he also wants consumers to file a complaint with his office if they experience insurance company steering.

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