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December 18, 2024
Cadwalader’s Global Litigation team is representing American Transit Insurance Company (ATIC) in a lawsuit seeking more than $150 million in compensatory damages (over $450 million in trebled damages), as well as punitive damages, from over 180 defendants in the New York and New Jersey area. The case, filed on December 17, is one of the largest insurance fraud RICO actions ever brought in New York State.
As stated in our client’s official press release, ATIC, a leading commercial automobile liability insurance provider with specialization in the taxi and for-hire vehicle sector, filed the case under the federal Racketeer Influenced and Corrupt Organizations Act (RICO), which allows recovery of three times incurred compensatory damages, and New York State common law.
The case, filed in the U.S. District Court for the Eastern District of New York, alleges that the defendants, including certain ambulatory surgery centers and related health care entities and individuals, engaged both individually and as part of a conspiracy to submit thousands of fraudulent insurance claims to ATIC. Our client seeks to recover funds it paid to providers who are alleged to have unlawfully sought payments for services, and the complaint further alleges that the services were rendered as a result of improper kickbacks or patient referrals, services that were not provided as billed or were provided in a manner misrepresenting the services provided, were medically unnecessary, and were provided to maximize reimbursement pursuant to a pre-determined protocol irrespective of the actual medical condition and needs of patients.
Within hours of its filing, the case (American Transit Insurance Company v. All City Family Healthcare Center Inc., et. al., Case No. 24-cv-08606) has received significant attention in the business and trade press, including Reuters, Life & Health, Insurance Insider US and The American Lawyer.
The Cadwalader team is led by counsel Bill Natbony and includes associates Zack Schreiber and Maria Giovanna Jumper.
