Uber has filed a racketeering lawsuit in Brooklyn against several legal firms and medical professionals, alleging that they orchestrated fake car crashes to perform unnecessary surgeries for insurance fraud. This scheme exploits New York's no-fault insurance laws, particularly impacting rideshare drivers who are compelled to maintain high personal injury coverage. Compounding the issue, the state’s largest taxi insurer, ATIC, recently became insolvent, further complicating insurance costs and availability. In response, Governor Hochul proposed legislative changes to streamline commercial auto insurance adjustments as Uber calls for broader insurance reforms.
Uber’s racketeering lawsuit alleges that a group of legal and medical professionals staged accidents and conducted unnecessary surgeries to commit insurance fraud.
New York's no-fault insurance laws provide lucrative opportunities for fraud, particularly for rideshare drivers who must carry higher coverage.
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