U.S. District Judge Mark Kearney recently denied a motion to dismiss a RICO case brought forth jointly by transportation company Uber and FedEx against Philadelphia-based Philadelphia personal injury law firm Simon & Simon.
In the suit, Uber and FedEx allege that Simon & Simon violated the federal anti-racketeering law (commonly referred to as RICO) by engaging in a pattern of “racketeering” – i.e. bribery, extortion or fraud. As noted in a previous PCCJR newsletter, the suit claims 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 medical 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.
Lawsuit abuse impacts all of us! It raises costs, hurts job creation, and destroys confidence in the legal system. Uber and FedEx have filed similar civil suits against plaintiffs’ firms in Los Angeles, Miami, and New York federal courts.
For a more detailed account of the case and Judge Kearney’s ruling, click here.