Allstate Files $6.3 Million Fraud Suit in N.Y.

Allstate (Northbrook, Ill.) closed out 2011 by filing its seventh fraud lawsuit of the year in New York.

The suit aims to recover $6.3 million from 83 defendants who allegedly submitted fraudulent and misleading bills for durable medical equipment, medical supplies and orthotic devices. It follows an investigation by Allstate's Special Investigative Unit.

Among the allegations in the complaint are that the defendants were able to commit the fraud due to provisions in New York State's No-fault Law.

"The no-fault system is being exploited and responsible citizens are the victims," Allstate spokeswoman Krista Conte says. "Without the support of lawmakers, incidents of fraud will continue to increase. We need to work together to fix the broken no-fault system."

Since 2003, Allstate has filed 34 fraud lawsuits in New York State seeking more than $185 million in damages.

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio