RICO Suits Against Personal Injury Lawyers: Mitigating New Risks From Standard Practices; Impact on Underlying Cases

This CLE webinar will discuss why personal injury lawyers' conventional approaches to interacting with medical providers and referral sources, and how those interactions are documented, may no longer adequately take into account the risks lawyers now face as a result of companies and insurers filing suit claiming many of these standard practices create or are evidence of Racketeer Influenced and Corrupt Organizations (RICO) Act violations. The panel will discuss why even highly ethical personal injury lawyers are affected and offer guidance on reducing the risk of RICO claims and increasing the likelihood of early dismissal.

In 2014, CSX recovered RICO damages and attorneys' fees totaling $7.3 million from a group of lawyers and a radiologist accused of submitting fraudulent asbestos claims. Since then, and more so since 2020, other insurers and companies, notably Uber, have adopted the RICO strategy and filed dozens of similar suits. The cases have been staunchly defended, but each judicial opinion has brought into sharper focus exactly how to allege a RICO claim that can survive dismissal or summary judgment.

The problem is that everyday, prevalent, and common practices for personal injury lawyers are alleged to be the telltale signs of fraud. Now, according to observers, defense attorneys in the underlying injury cases are adding fraud as an affirmative defense on the grounds that the RICO cases offer good faith to do so. They then seek discovery into counsel's practices with medical providers and others. This discovery could lead to amended pleadings asserting fraud against a claimant or to new suits against law firms, medical providers, and others. 

Counsel need to know exactly what is and is not ethical and when that line is crossed when dealing with third-party providers and referral sources. More than ever, counsel need to document that they are on the right side. They may also need to check their insurance policies for coverage issues.

Listen as our panel of experienced attorneys discusses the claims and defenses being asserted in RICO cases against attorneys and others, what are and are not ethical practices, how these suits are affecting the underlying lawsuits involving claimants, and proactive steps personal injury attorneys can take to adequately address the risks they now face as a result of companies and insurers filing suit claiming standard practices create or are evidence of RICO violations.