Uber Technologies filed a lawsuit against two Los Angeles law firms and a spinal surgeon for conspiring to inflate medical claims against the company. The lawsuit invokes the federal RICO Act and alleges that the involved parties fabricated injuries and performed unnecessary or overpriced surgeries. Uber claims the alleged misconduct has forced the company to spend millions on legal fees and settlements, impacting costs for riders and drivers. Adam Blinick stated that fraud and legal abuse raise costs for everyone in California. The lawsuit highlights the issue of excessive attorney fees and targeting of companies with higher insurance limits.
Uber alleges the law firms involved target companies with higher coverage limits in an effort to extract larger settlements and routinely charge contingency fees of 45% or more.
Fraud and legal abuse raise costs for everyone - especially here in California, where excessively high government-mandated insurance limits for rideshare make companies like Uber a target for bad actors.
Uber has spent millions on legal fees and settlements as a result of the alleged scheme, leading to increased costs for riders and drivers across the region.
In California, transportation network companies such as Uber have to cover every trip with $1 million in liability insurance, occupational accident insurance, and uninsured and underinsured motorist coverage.
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