The complaint specifically cites 30 durable medical retail equipment companies and 25 individuals who allegedly owned one or more of these retail companies and 18 durable medical wholesale companies and 10 individuals who allegedly owned one or more of the wholesale companies. Since 2003, Allstate says it has filed 34 fraud lawsuits in New York State seeking more than $185 million in damages.
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Among the allegations in the complaint are that the retailers (through their respective individual owners and in conspiracy with the wholesalers and their respective owners) submitted or facilitated the submission of fraudulent and misleading bills and supporting documents to Allstate for reimbursement under New York State's No-fault Law.
Allstate says the lawsuit was filed following an investigation by its special investigative unit and seeks to recover personal injury protection benefits Allstate paid on behalf of its customers during timeframes specified in the lawsuit.