Allstate Insurance Co., a unit of Allstate Corp. (ALL), said it has filed a complaint in the United States District Court, Eastern District, Southern Division against Global Medical Billing, Sterling Heights, Mich., alleging insurance fraud, misrepresentation and unjust enrichment.
Allstate seeks to recover the monies paid to the defendants that exceed $380,000 plus exemplary damages, including attorneys' fees and treble damages for a claim under RICO, the Racketeer Influenced and Corrupt Organizations Act.
The alleged scheme involves solicitation of persons who have been involved in motor vehicle accidents, sending them to medical clinics under the control of non-medical personnel who directed medical care.
The complaint also alleges that the employed physicians ordered unnecessary services, including physical therapy and transportation, as well as unnecessary testing.
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