Two alleged insurance fraud lawsuits filed by a former Safelite AutoGlass employee against the company have been settled for $31 million.

According to the second amended California complaint, Safelite allegedly produced false and misleading bills to insurance companies concerning a replacement part Safelite uses to repair automobile glass and for services the company provided for only a small number of customers.

“As a direct result of defendants’ conduct, false and fraudulent claims have been made against consumers and insurance policies issued by numerous insurance companies, including but not limited to GEICO, Allstate Insurance Company, Nationwide Mutual Insurance Company, The Travelers Companies, Inc., and Progressive Corporation,” the complaint states. “As a direct result of the Defendants’ conduct, insurance companies and their policyholders have incurred substantial financial losses.

“[A]lthough defendants exuded the image that they were using the best parts available in the industry, defendants instead knowingly allowed employees to use parts of lesser quality while billing insurance companies for the higher quality parts.”

Both complaints were filed in January 2023 by Brian Williams, former Safelite product development and strategy manager. The complaints alleged violations of each state’s insurance claims fraud prevention laws when Safelite allegedly billed for windshield molding parts and vehicle cleaning services provided during the COVID-19 pandemic.

The Illinois complaint adds, “Together, these schemes resulted in tens — if not hundreds — of millions of dollars in overcharges to private insurers for claims filed in Illinois alone; overcharges which have undoubtedly been passed on to all Illinois citizens through increased premiums.”

It also states that, in many cases, Safelite used neither OEM nor vehicle-specific aftermarket window moulding to replace the damaged moulding.

“Instead, technicians have been using ‘universal’ molding to replace the part-specific molding on the vehicles brought in for repair. Universal molding is generic, cheap rubber or plastic that may not be fit for the purpose of what it is being used for. Upon information and belief, Safelite purchased universal molding for approximately $0.20/foot.

“Even though they have access to vehicle-specific molding, Safelite technicians around the country can choose what molding they will ultimately use on a vehicle. And although OEM and aftermarket moldings are of better quality, technicians prefer using universal molding. Technicians choose to use universal molding because it is easier and faster to use than an OEM or aftermarket molding. Furthermore, because Safelite AutoGlass lacks any specific processes and training for technicians, local technicians training other technicians likely teach them to use universal molding instead of part-specific molding.”

According to the combined settlement agreement for both cases, the parties settled “to avoid the delay, expense, inconvenience, and uncertainty of continued litigation.”

Safelite denied all allegations against it. By entering into the agreement, “no party admits to any liability or that they engaged in any unlawful, wrongful, or improper conduct,” the document states.

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