Judge Denies LYNX’s Bid to Block State Farm-Safelite Switch

A United States District Court denied LYNX Services LLC’s request for a temporary restraining order (TRO) against State Farm Mutual Automobile Insurance Company, Safelite Group Inc. and Safelite Solutions LLC. If granted, the TRO would have halted State Farm’s transition from LYNX to Safelite Solutions as its glass claims administrator on July 1.

LYNX filed a motion requesting the court issue a TRO on June 27, citing alleged misappropriation of trade secrets. The U.S. District Court of Central Illinois, Peoria Division, held an emergency hearing on June 30 to address LYNX’s motion for a TRO.

According to the minutes of the hearing, Judge Jonathan Hawley denied the request and ordered both parties to submit redacted versions of the injunction documents filed under seal.

With the TRO denied, Safelite Solutions is free to provide third-party auto glass administration services for State Farm on July 1.

In the TRO request, LYNX asked the judge to order:

1. Safelite Group and Safelite Solutions to stop using LYNX’s confidential information;
2. State Farm to stop disclosing LYNX trade secrets and confidential information to other parties, including Safelite;
3. Safelite Group and Safelite Solutions to certify the destruction of these materials, and
4. The TRO preventing Safelite Solutions’ glass claims administration takeover.

“[The] defendants’ acts of misappropriation erase LYNX’s unique ability to provide competitive benefits of METRYX to its insurance company customers based on the use of LYNX’s logic and collection of high-quality data,” the court filing says.

The document claims Safelite and State Farm’s alleged misappropriation of trade secrets will cause “immediate, irreparable harm” to LYNX by reducing the value of its trade secrets, damaging its reputation with customers and hurting its “competitive advantage in the marketplace.” LYNX claims it would also lose customers to Safelite, reducing business value.

Since LYNX filed it under seal, no further information is available about the injunction alleging Safelite and State Farm breached the Defend Trade Secrets Act of 2016. glassBYTEs/AGRR magazine will monitor the case and provide updates as they become available. Safelite, State Farm and LYNX have yet to respond to AGRR’s request for comment.