A federal racketeering lawsuit that alleged a Nevada chiropractor and his businesses conspired to submit inflated claims for patients injured in auto accidents was won by Allstate Insurance for $7 million.
In June, U.S. District Judge James Mahan sided with Allstate and earlier this month he issued the final monetary judgment, which sets the stage for the company to “vigorously fight” medical fraud in Nevada and across the country.
“Medical insurance fraud affects all policyholders’ premiums, and it’s not fair for consumers to pay higher rates for criminal behavior,” Allstate spokesperson Chelci Vaughan said in a news release. “We are committed to protecting our customers from being victimized by this type of fraud.”
The complaint, a first of its king brought in Nevada by Allstate was initially filed in 2008 against the doctor and his chiropractic license was revoked in 2010.
The lawsuit contended that the chiropractor accepted auto accident victims to his clinic for unnecessary medical consultations and expensive diagnostic studies with the intent to general more profit and revenue. He allegedly provided unnecessary and often excessive treatment, charged for treatments that never occurred and several other patterns of fraudulent conduct.
Allstate is expected to recover money from some 150 auto accident claims that involved fraud.
Steve is the Managing Shareholder of Steven J. Klearman & Associates, a civil litigation law firm located in Reno, Nevada. He practices primarily in the areas of civil litigation and injury law, and has authored one of the definitive guides to Nevada civil law that is widely used by Nevada judges and attorneys, his book entitled Elements of Nevada Legal Theories.