According to Bloomberg, Uber has filed a lawsuit alleging an elaborate scheme to defraud the company through staged car accidents. The suit, filed in Brooklyn, New York, claims a network of law firms, doctors, and medical clinics are involved.
The lawsuit alleges the group exploits New York’s no-fault insurance laws. They supposedly force Uber to pay for fabricated or inflated medical claims from passengers involved in real or staged minor collisions.
The lawsuit further claims the group pressures passengers into undergoing unnecessary medical procedures, including major surgeries like spinal fusions. New York’s no-fault system requires insurance to cover medical expenses regardless of who is at fault in an accident.
Uber argues this system is being abused, generating substantial profits for the conspirators. New York City regulations mandate higher personal injury coverage for taxis and rideshare vehicles (up to $200,000) than individual drivers.
A similar lawsuit was filed last December by the American Transit Insurance Company (ATIC), the largest insurer of commercial drivers in NYC, also alleging no-fault insurance fraud against doctors and clinics.
Adding another layer, Bloomberg notes that Uber itself sued ATIC last year, accusing them of improperly shifting numerous accident lawsuits to Uber, resulting in significant legal costs for the rideshare company.
