New reporting from the Daily Mail and Insurance NewsNet on what has been described as “one of the largest RICO cases ever filed in New York” provides further evidence of the need for reform and more transparency and disclosure in the legal system.

According to Insurance NewsNet,

“A New York City civil lawsuit accusing dozens of clinics and doctors – including the husband of longtime co-host of ‘The View,’ Sunny Hostin – of massive medical fraud is moving closer to a settlement. According to documents filed Monday, the insurance company American Transit Insurance Co. … settled with 141 of the 186 defendants named in the 698-page complaint.”

The December 2024 RICO complaint alleged “rampant” insurance fraud in New York because of the state’s no-fault laws. The Daily Mail highlighted the most notable allegations:

“American Transit claims ‘rampant’ insurance fraud is endemic in New York State thanks to its ‘No-Fault Law’ under which insurers must pay up to $50,000 for medical expense for people injured in road accidents. ‘These substantial possible no-fault recoveries can incentivize providers with ill intent to over-diagnose, over-treat, and over-bill to recover the most money for themselves,’ American Transit said in a statement. The law was introduced in 1974 ‘in the wake of rapidly rising automobile insurance costs and when accident victims were experiencing long delays in compensation,’ American Transit says in the suit.”