Uber suing California lawyers, medical providers over fraudulent insurance claims – Bloomberg

Uber Technologies (NYSE:UBER) is seeking to recover millions in legal fees spent trying to defend what the company alleges are “fraudulent insurance claims” in California.

In a federal case filed in a California district court, Uber (NYSE:UBER) claims a group of lawyers in Los Angeles directed passengers to “pre-selected medical providers” who subsequently submitted inflated medical bills to treat “negligible or non-existent injuries from minor collisions” between 2019 and 2024, according to Bloomberg.

Uber (NYSE:UBER) claims the lawyers named in the case allegedly took advantage of a $1 million ride-share insurance policy limit by inducing “significantly larger settlement payments,” which in one case, were 10x more than a typical claim.

The lawsuit, which aims to fully recover millions of dollars in defense costs and settlements, is part of a larger effort by the company to address mounting insurance costs and state legislation mandating insurance coverage for the ride-share industry.

Uber (UBER) claims these increased costs are being passed down to riders through higher fares, contributing to a slowdown in the company’s ride-share business.

“Consumers ultimately are paying for fraudulent activity, and so we have an obligation to protect them,” the company said in a statement.

The California lawsuit follows similar actions against attorneys and medical providers in South Florida and New York for staging accidents and “generating an excuse to deliver unnecessary medical care, submit false insurance claims for recovery and file frivolous lawsuits to sue for non-existent damages.”