Allstate's Rehab Clinic RICO Claims Remain In Play

Law360, New York (October 5, 2009, 2:07 PM EDT) -- A federal judge has preserved Allstate Insurance Co.'s Racketeer Influenced and Corrupt Organizations Act claims against the New York rehabilitation clinics that the company accused of defrauding it of insurance payments for six years, rejecting a motion to dismiss.

Judge Denis Hurley of the U.S. District Court for the Eastern District of New York denied a motion Wednesday to dismiss RICO and common law fraud claims from Valley Physical Medicine & Rehabilitation PC, Elite Physical Medicine Rehabilitation PC and several other defendants.

The insurance company alleges...
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