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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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.