Federal Court Denies Remaining Claims Involving IGA-Backed Lawsuit Against Safelite Group

November 17, 2005

A Federal Court judge has dismissed the final three claims in an Independent Glass Association (IGA)- backed lawsuit against Safelite Group Inc., parent company of Safelite Solutions LLC and Safelite Fulfillment Inc.

The ruling was made by Judge Ann Montgomery of the United States District Court of Minnesota in the case of Independent Glass Association Inc., et al. v. Safelite Group Inc., et al. (Case No. 05-238 ADM/AJB).

“This is a decisive victory,” said Mark Smolik, senior vice president and general counsel of Safelite Group Inc. “We are pleased all allegations in this case have been soundly rejected so quickly,” added Smolik.

“We reached out to the IGA before this suit was filed to discuss a resolution of the Association’s dispute. We believe disputes such as this are more appropriately resolved through rational business discussions. The IGA clearly sees things differently and its strategy failed them in this instance,” said Smolik. “We believe the IGA would be better served focusing its time, energy, and resources working with the industry to resolve disputes, rather than by initiating litigation,” added Smolik.

“Considering comments made by IGA leadership about this litigation, we believe aspects of this case may have been frivolous. If we conclude they were, we will seek sanctions against the IGA related to this case,” said Smolik.

The lawsuit was filed in February 2005 by the Independent Glass Association (IGA), a Minnesota consumer, a Nebraska consumer, and an unidentified Minnesota insurance adjuster. The Court dismissed the IGA’s claims of unfair competition under the federal Lanham Act, along with its claims of common law fraud, deceptive trade practices, violation of Minnesota’s Consumer Fraud Act, False Advertising Act and state insurance adjuster licensing laws on Aug. 26, 2005.

Ohio-based Safelite Group Inc., is a provider of property and casualty claims management solutions and auto glass products and services.

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