State Farm Lawsuit Claims Fla. Company, Recruiter Acted Fraudulently

June 24, 2003

State Farm recently filed a lawsuit charging that a Florida company and a recruiter set up unnecessary, fraudulent medical tests on auto accident victims at chiropractors’ offices nationwide, according to Associated Press.

The civil racketeering lawsuit contests more than 600 insurance claims filed in 40 states, asking more than $4.5 million in damages. Four defendants were named in the lawsuit.

The insurer’s lawsuit alleges that a Fort Lauderdale man recruited chiropractors for a doctor at seminars, noting financial incentives. The man then reportedly arranged for technicians to go to the participating chiropractors’ offices to conduct tests on patients.

State Farm reported that one of the tests registered no diagnostic value in confirming pinched nerve roots, and a trio of other tests have no meaning unless an added test is undertaken, according to the lawsuit.

As a result, patients were often reportedly receiving inaccurate information, the lawsuit contends.

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