Toronto, Ontario -- Caliber Collision is facing a federal class action lawsuit alleging mismanagement of its employee retirement plan.
Filed Sept. 10 in the Eastern District of Texas, the suit claims the company used more than US$4 million ($5.5 million) of 401(k) assets for its own benefit while charging participants more than US$6 million (C$8.2 million) in expenses. Former employee Roy Fordyce is the named plaintiff.
The complaint alleges unvested contributions from departing employees were applied to offset Caliber’s matching contributions instead of reducing plan costs. The activity is said to have occurred between 2019 and 2023, involving up to US$1.7 million (C$2.3 million) annually. Four law firms across five states are representing plaintiffs.
The lawsuit comes as the company prepares for an initial public offering, filed confidentially with the U.S. Securities and Exchange Commission in July. The IPO could come in early 2026, with Bank of America, Goldman Sachs and JPMorgan Chase leading the finance work.
Caliber also acquired mobile repair firm Car Body Lab, expanding services in seven states.
Caliber operates more than 1,800 collision repair centres across the United States and is backed by private equity firm Hellman & Friedman.
