Insurers File Racketeering Lawsuits To Counter No-Fault Schemes In Michigan

Fed up with no-fault fraud, auto insurance giants Allstate and State Farm have, in recent years, brought racketeering lawsuits against a handful of metro Detroit medical clinics, MRI centers and doctors. These lawsuits — in federal court against a half-dozen or so businesses — have alleged sham treatments, excessive billing, accident-victim solicitation and even under-the-table cash payments made to encourage patients to keep coming in. Some clinics closed under the weight of these lawsuits, even as they professed innocence. Other cases ended in confidential settlements or are still pending.