Ride share company Uber is taking a stand against a barrage of lawsuits from a well-known Philadelphia injury law firm. Last week, the company filed a civil RICO lawsuit in the Eastern District of Pennsylvania against the law firm of Simon & Simon as well as select medical providers. RICO suits are filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) against individuals or organizations alleged to have engaged in a pattern of “racketeering” – i.e. bribery, extortion or fraud.
The suit alleges that the law firm formulated a scheme to funnel claimants – many with minor or no injuries – to a network of preselected, medical providers in an effort to drive up insurance claims. The providers involved in the scheme are alleged to produce false or inflated medical records and/or diagnose non-existent injuries in order to build a case that the claimant will require a lifetime of expensive and extensive medical care.
Notably, the RICO suit quotes a federal judge who stated in a previous case: “I have yet to see a single case involving the Simon office where any plaintiff actually pursued the recommended care. I therefore view these reports as litigation documents, bearing little relationship to real world medical care.”
As is the case in other sectors that are targeted by plaintiffs’ attorneys, these lawsuits have the effect of raising operational costs for the company and increasing costs on consumers. Insurance rates and premiums increase as a result of this lawsuit abuse.
This is the fourth RICO civil lawsuit filed by Uber. The company has previously filed RICO suits in New York, Miami, and Los Angeles. You will find the complaint in Uber v Simon & Simon here.