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Letter to the Editor
Friday January 19
Keystone Automotive Says MQVP Lawsuit Lacks Merit
Keystone Automotive Industries, Inc. has announced it is in the process of a careful and complete investigation of the facts related to a lawsuit filed in December 2006 by MQVP, Inc. The suit was filed in the Federal Bankruptcy Court in Detroit, Michigan, the court where MQVP sought protection under Chapter 11 of the Bankruptcy Code, with a filing on August 17, 2006.MQVP alleges that Keystone distributed non-MQVP approved parts, used the "MQVP" service mark without MQVP's permission and traded on the goodwill of MQVP and its service mark in a way that confused the public. Based on these allegations, MQVP is seeking at least $20 million in damages, and other equitable relief, on several legal claims.
MQVP is an independent validator of certain alternative collision replacement parts sold by distributors like Keystone who are qualified to participate in the MQVP program. Keystone had been a qualified participant in the MQVP program from its inception in 2003. Keystone voluntarily withdrew from the program in November 2006, and at that time was a member in good standing of the MQVP program.
"Based on our evaluation to date, Keystone does not believe it has any liability to MQVP. In addition, should any liability be determined, we do not believe it would have a material impact to the company's financial position," said Richard Keister, president and chief executive officer of Keystone Automotive.
In addition to having participated in the MQVP program, Keystone is the nation's largest supplier of CAPA certified aftermarket collision replacement parts to the body shop industry, providing more CAPA parts than all other US distributors combined.
"The quality and integrity of Keystone's Platinum Plus parts are most important and fundamental to our business. Keystone is recognized as an industry leader and commits substantial time, energy, and resources to ensure that our employees maintain the highest level of integrity and abide by our policies and quality standards. We stand behind all of our parts with the most comprehensive warranty in the aftermarket collision replacement parts industry," Keister said.
Keystone Automotive Industries, Inc. distributes its products primarily to collision repair shops through its 136 distribution facilities, of which 22 serve as regional hubs, located in 38 states and Canada.
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