Lawsuit Filed Against Insurance Auto Auctions

Insurance Auto Auctions Inc., a North Hollywood company that sells salvaged vehicles, said it has been named in a shareholder lawsuit filed against the company in the U.S. District Court for the Central District of California.

The suit alleges violations of federal securities laws and seeks damages on behalf of shareholders who purchased the company’s common stock between July 27, 1994, and July 31, 1995, the company said.

In a written statement, the company said it “believes that the lawsuit is without merit and intends to defend against it vigorously.”

The company reported a profit of $1.92 million in the second quarter, which ended June 30, down 37% from the same three-month period a year earlier.

Revenues rose to $65.2 million, up 54% from $42.4 million a year earlier.