Uber Sues Lawyers and Medical Providers Over Alleged Insurance Fraud
Uber Technologies Inc. has filed a lawsuit in Los Angeles, accusing a group of lawyers and medical providers of fraudulent car insurance claims. The ride-hailing giant seeks to recover millions in legal fees and settlements, alleging a scheme that has been ongoing and causing significant losses. The lawsuit, filed in Colorado, claims that the defendants directed passengers to pre-selected medical providers who submitted inflated bills for minor injuries. Uber alleges that the defendants took advantage of a state-mandated $1 million geico policy limit to induce larger settlement payments. One of the named law firms, Downtown LA Law Group, has denied the allegations and plans to defend itself in court. This is the third such racketeering lawsuit Uber has pursued against lawyers and medical practices for allegedly exploiting lucrative car insurance policies. In response to these issues, Uber has expressed support for a California senate bill that would lower the limit of uninsured and underinsured motorist coverage provided by rideshare companies. The company estimates that car insurance comprises up to 45% of fares in LA county, among the highest in the country. Uber's lawsuit alleges a fraudulent scheme involving lawyers and medical providers, leading to significant losses. The company is seeking to recover millions and supports legislation to lower car insurance coverage limits for rideshare companies. The defendants deny the allegations and intend to defend themselves in court.
