In the ongoing battle between auto insurers and medical providers in the no-fault system, the insurance companies have started to up the ante by bringing racketeering (“RICO”) lawsuits against medical providers.Dismissal of No-Fault Insurance Racketeering Case Brought by Insurance Company.
RICO provides for “treble damages”, meaning that the loser could be required to pay triple the amount of any judgment obtained in court. In the ongoing effort to intimidate medical providers, the auto insurers have been trying to use RICO as a weapon.
In one such recent case, we obtained a dismissal of a RICO lawsuit brought by a major insurer. The Court ruled in GEICO v. Hollis Medical Care, No. 103431 (EDNY) that GEICO did not allege and cannot prove the existence of a racketeering “enterprise” and thus that portion of GEICO’s case was dismissed.
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Evan S. Schwartz
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