Insurers Boost Use of RICO Lawsuits to Combat Staged Personal Injury Claims

Since 2020, insurance companies have intensified efforts to combat fraudulent personal injury claims through lawsuits alleging violations of the Racketeer Influenced and Corrupt Organizations Act (RICO). These cases involve claims of staged accidents and exaggerated injuries, often orchestrated by networks of medical providers, attorneys, and other parties. Prominent cases in Florida and New York illustrate how insurers like GEICO and State Farm have used RICO litigation to secure favorable settlements and judgments against those accused of fraud. In Florida, insurers filed lawsuits against medical providers accused of inflating personal injury claims following low-impact car accidents, while in New York, GEICO obtained a $2.5 million judgment against a fraudulent patient referral scheme.

Defense attorneys are increasingly incorporating RICO-based fraud defenses in personal injury cases, deploying discovery tactics such as subpoenas for police reports, phone records, and accident evidence. Meanwhile, claimant attorneys seek to limit references to RICO in court, as seen in a recent New York case where a judge allowed selective questioning on RICO-related allegations. With RICO fraud claims gaining traction, insurers and legal teams are developing new strategies to identify and litigate against fraudulent practices.