03:52 PM EDT, 05/08/2024 (MT Newswires) -- Berkshire Hathaway (BRK.A) affiliate GEICO's defense in a claim payment lawsuit against windshield repair company Glassco appears to be lacking statutory support, according Florida Supreme Court justices, Bloomberg reported Wednesday.

Glassco has been accused of using a loophole in state law for overcharging insurance companies, while taking advantage of no-deductible repairs, according to the report.

GEICO accused Glassco of violating Florida's Repair Act in a counter lawsuit after the latter filed a case against GEICO in 2019 for alleged underpayment of claims for auto glass repairs between 2016 and 2019.

The justices said the issue with the insurance industry's argument is that the system seems to be legal under Florida state laws and GEICO does not fall under the term "customer" who can claim damages for over charging on repair fees.

Berkshire didn't immediately reply to MT Newswires' request for comment, while GEICO and Glassco could not be reached.

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