POMONA, Calif., Jan. 10, 2007 (PRIME NEWSWIRE) -- Keystone Automotive Industries, Inc. (Nasdaq:KEYS) today 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.
About Keystone
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. Its product lines consist of automotive body parts, bumpers, and remanufactured alloy wheels, as well as paint and other materials used in repairing a damaged vehicle. Its products are sold to more than 25,000 repair shops throughout the United States and Canada.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. There can be no assurance that future developments affecting the company will be those anticipated by the company. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors, including but not limited to the outcome of the litigation described above. Reference is also specifically made to the "Risk Factors" section set forth in the company's Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) for the fiscal year ended March 31, 2006 and in Part II, Item 1A of its Form 10-Qs filed with the SEC thereafter, including its Form 10-Q for the quarter ended September 29, 2006, for additional information on the risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.