Uber Files Racketeering Lawsuit Alleging NY Auto Insurance Fraud

Uber has filed a racketeering lawsuit against several law firms and medical professionals in New York, alleging they staged fake car accidents and performed unnecessary surgeries to exploit the state's no-fault insurance system. The lawsuit claims that since 2019, the group has targeted individuals involved in minor collisions, leading them to make exaggerated claims and undergo invasive procedures, including spinal fusions. These actions are said to contribute to rising insurance costs, which Uber CEO Dara Khosrowshahi attributes to a slowdown in bookings. The case highlights broader issues in New York's insurance landscape, particularly following the insolvency of American Transit Insurance Co., the city's largest taxi insurer, which has also pursued similar fraud claims. The rise in staged crashes has prompted state officials to warn drivers about such scams and emphasize the importance of defensive driving. As Uber calls for insurance reform, the company continues to navigate the rising costs associated with these alleged fraudulent activities.