Gluckstein Lawyers and Wagners Law Firm File Class Action Lawsuit Against Major Automobile Insurers for Underpayment of Total Loss Claims
TORONTO, Feb. 25, 2025 /CNW/ - Gluckstein Lawyers and Wagners Law Firm have jointly filed a proposed class action lawsuit against several leading automobile insurance companies, alleging that they have systematically underpaid consumers for total loss accident claims by relying on flawed valuation reports that reduce the compensation owed to policyholders.
The lawsuit targets insurers who have used reports from Mitchell International, Inc. and Audatex (also known as Solera) to assess the Actual Cash Value of accident vehicles. These reports, according to the plaintiffs, contain arbitrary and unlawful charges, referred to as the "Projected Sold Adjustment" and "Typical Negotiation Adjustment," which lower the vehicle valuations and consequently reduce the payouts to consumers.
"This class action lawsuit seeks to hold insurance companies accountable for practices that we believe have unfairly diminished the compensation owed to consumers in their time of need," said M. Steven Rastin, Co-Chair of the Class Actions practice group at Gluckstein Lawyers. "By relying on flawed and deceptive valuation methodologies, these insurers have created a system that profits off of undervaluing total loss vehicles, often at the expense of individuals who are already facing the burden of a significant loss."
The lawsuit claims that both the "Projected Sold Adjustment" and "Typical Negotiation Adjustment" are based on outdated and inaccurate assumptions about the used car market, where car buyers are assumed to always negotiate a lower price than a dealer's listed price. This, according to the plaintiffs, is both arbitrary and misleading, and leads to inflated profit margins for insurers at the expense of the policyholders.
"Consumers trust their insurance companies to provide fair and reasonable compensation after a total loss, but we allege that these insurers are using these adjustments as a way to artificially deflate the value of the vehicles," said Raymond F. Wagner K.C., founder of Wagners Law Firm. "Our goal with this lawsuit is to ensure that those who have been affected by these practices are compensated fully and fairly."
The class action involves individuals who made automobile insurance claims related to total loss accidents and whose claims were subject to valuation reports that included the disputed adjustments. The action seeks damages for those who were undercompensated for their total loss claims due to the improper deductions in the valuation process.
A copy of the Notice of Action and Statement of Claim is available to view here.
About Gluckstein Lawyers:
For over 60 years, Gluckstein Lawyers has been an award-winning industry leader in personal injury law across Ontario, including the areas of medical malpractice, class actions and mass torts, birth injury, and motor vehicle accidents. Our experienced personal injury lawyers get clients the compensation they deserve. www.gluckstein.com
For more information or to join the lawsuit, please contact Gluckstein Lawyers or Wagners Law Firm at:
Gluckstein Lawyers
[email protected]
416.408.4252
Wagners Law Firm
[email protected]
902.425.7330
1.800.465.8794 (toll free)
For Media Inquiries Contact: Brenda Agnew, Marketing Director, Gluckstein Lawyers, [email protected]
SOURCE Gluckstein Lawyers
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