This Deep Dive discusses how Liberty Mutual and its affiliated insurance companies are suing PARS Medical P.C., CADS Anesthesia Services PLLC, and several individuals for an alleged long-running scheme to commit no-fault insurance fraud in New York. The plaintiffs claim the defendants billed for services not rendered, medically unnecessary procedures, and at excessive rates, along with engaging in an unlawful referral and kickback arrangement with numerous other clinics. These alleged fraudulent activities, including various injections and "surgeries" often performed under unnecessary anesthesia, led to Liberty Mutual being wrongfully induced into paying over $827,000 for claims the defendants were not lawfully entitled to receive. The lawsuit accuses the defendants of violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, common-law fraud, and unjust enrichment, seeking both damages and a declaration that they are not obligated to make further payments.
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