Memorandum Regarding False Reports of Price Fixing

Memorandum Regarding False Reports of Price Fixing :

This Memorandum should be typed in the official letter-head of the company.

TO :



SUBJECT : False Reports of Price Fixing

Many of you saw the report by the KTBX Eyewitness News at 5 p.m. and 10 p.m. on May 13 about alleged price fixing by local insurance companies. KTBX reported that Ali Khan, State Attorney General, is filing charges against six companies, including Cambridge Insurance Group, for fixing automobile insurance rates. This report is false.

The truth is the attorney general announced on May 12 he would launch an investigation to look into allegations of price fixing brought by Jatin Parkar, president of National Insurance Company. This is a preliminary investigation; no charges have been filed.

Please inform your clients that this report is inaccurate. Cambridge Insurance Group has never engaged in price fixing. We have requested that KTBX air a retraction and we are drafting a letter to send to our current policyholders. These false allegations and the ensuing investigation could do a great deal of damage to the solid reputation we’ve built in Ludhiyana over the past 25 years. Let’s work hard to inform our current and potential clients of the truth.

Memorandum Regarding False Reports of Price Fixing