Callaway golf has come under fire in recent years after being sued by the Obama administration and others over the cost of its insurance policies.
Now, the company is being sued over the same issue.
The company, which has about 30,000 customers, recently said it will start charging more for auto insurance and would begin doing so in 2018.
The lawsuit comes as the auto industry is facing its own crisis over the rising cost of auto insurance.
Some analysts predict a sharp decline in auto sales in the United States in the second quarter, and some experts also worry that the industry may not see enough growth for the year to come.
The lawsuit filed in federal court in Manhattan is a continuation of a recent effort by the Department of Justice to force the company to disclose the cost for auto policies purchased in the years before the financial crisis.
The DOJ alleges that the company’s auto insurance policies were “substantially similar” to other companies’ policies and that they were likely underwritten by companies that did not provide as comprehensive coverage.
In an email, a company spokesman called the lawsuit “nonsense.”
The lawsuit alleges that in 2013, Callaway began charging $12 a month for its “premium” auto insurance, which was $20 per month in 2015 and $30 per month now.
Callaway has been a strong competitor to other insurers, including the $15-per-month Preferred Insurance Company, which it purchased from the Federal Government in 2007, according to the lawsuit.
It said it was only following the rules.
The DOJ said the company “continues to be subject to numerous investigations and lawsuits by government entities, including several investigations conducted by the United Kingdom’s Office for Fair Trading.”
The department said that while Callaway is not subject to the same laws as other insurers in the country, it is not immune from such actions.
In its lawsuit, the DOJ says that Callaway “has continued to engage in deceptive practices, and is responsible for paying premiums to the government, which include government fines and penalties and penalties imposed by the IRS.”
The company has defended itself by saying that it had “committed to providing all of the policies and policies to the customers who purchased them, and that it does not provide a premium subsidy for any of its policies.”
In its defense, the spokesperson said that “Callaway does not charge any premium subsidy to any of the customers in question.”