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Letter to the Editor

Autobody by Caldwell Sues Paint Makers for Price-Fixing

Publisher's Note: INSIGHT's Charles Baker spoke with Kevin Caldwell, owner of the collision repair facility that is the plaintiff named in the law suit. Despite his prominent industry position as former head of ASA's Collision Division, Caldwell stated that there is no ASA involvement in the law suit. INSIGHT will continue to follow this development.

Directly on the heels of a Justice Department investigation into possible anticompetitive practices in the automotive refinishing industry by the world's largest paint manufacturers, a California collision repair facility has filed suit in federal court claiming some of the world's largest paint makers have engaged in price fixing.

The lawsuit, alleging that repair shops paid "artificially inflated prices" for refinishing products, seeks money damages and an injunction barring collusion. It also seeks class-action status to include other auto body shops.

The paint makers have denied wrongdoing.

The only named plaintiff in the lawsuit, filed Tuesday in federal court in Newark, New Jersey, is Autobody by Caldwell Inc. of Laguna Hills, California. Kevin Caldwell, owner of the facility, was formerly head of the Collision Division of national organization ASA.

Accused in the lawsuit are PPG Industries Inc. of Pittsburgh; Sherwin-Williams Co. of Cleveland; DuPont, of Wilmington, Del.; BASF AG of Germany, which has its U.S. subsidiary in Mount Olive, N.J.; and Akzo Nobel NV of the Netherlands, which has U.S. bases in Chicago and Norcross, Ga.

PPG spokesman John S. Ruch said its own investigation found no wrongdoing. PPG responded to a grand jury subpoena seeking information on industry practices "and we haven't heard another thing since January," Ruch said.

DuPont spokesman Irvin Lipp said the company was cooperating with the Justice Department and has "found no evidence that our employees did anything wrong."

Akzo Nobel lawyer John Behan said the company is cooperating with investigators, denies any wrongdoing and would defend any lawsuits.

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