Allstate Insurance Company, a company that has been a strong proponent of shutting down the civil justice system, has actually filed a federal lawsuit in the very system it has criticized. In its suit, Allstate is alleging deception and coercion on the part of a Texas-based chiropractic company. The lawsuit, filed in U.S. District Court for the Northern District of Texas, accused 66 defendants of taking part in an insurance fraud scheme by convincing car crash survivors that they had severe injuries requiring immediate treatment, which Allstate had to cover. The primary defendant is Arlington-based Chiropractic Strategies Group Inc. Other defendants include related law office management companies, telemarketers, and lawyers.
￼Allstate seeks $10 million in the lawsuit, alleging violations of the federal Racketeer Influenced and Corrupt Organizations Act. According to the complaint, a telemarketing company would solicit people who had been in car crashes, offering them a free chiropractic exam. Once at the clinics, located in Texas, Ohio, Indiana, and Alabama, patients were told they needed immediate treatment. Patients were also referred to lawyers, some of whom would show up at the clinic to sign up the patients as clients, according to the lawsuit. If the allegations of this lawsuit are true, then Allstate has every right to go into the courts to seek justice. However, when one of its policyholders, or a claimant who has a claim against a policyholder, has valid claims that the company either fails to pay or pays too little, those persons should have the same right to justice as does Allstate in its current lawsuit.
Source: Associated Press
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