California Auto Insurer Parts Conspiracy Case to Move Forward

Northern District of California Judge James Ware refused to dismiss a putative class action alleging that California auto insurers violated the Cartwright Act, California’s antitrust statute, by conspiring to require auto repair shops to use inferior replacement parts.  The case had been twice dismissed and then revived by the 9th Circuit on standing and insurance exemption grounds.  The motion to dismiss this time was based on Twombly, which requires allegations of facts sufficient to show that a conspiracy, rather than independent action, led to the allegedly offending conduct.  The court found the complaint sufficient to meet this standard.

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