Uber Technologies has filed a federal lawsuit in Los Angeles alleging that a network of personal injury attorneys and medical providers conspired to create fraudulent insurance claims through unnecessary medical treatments and inflated bills.
The lawsuit, filed on July 21, 2025, alleges that several defendants operated a scheme in which personal injury attorneys directed clients to pre-selected medical providers who performed unnecessary treatments and then submitted artificially inflated bills. The lawsuit claims these bills were issued on a lien basis, with secret side agreements between the attorneys and medical providers to discount the bills if settlement amounts were insufficient.
“Unscrupulous personal injury attorneys” were allegedly sending clients to medical providers for unnecessary or unrelated medical treatment in what Uber characterizes as a kickback scheme designed to generate fraudulent injury claims, according to the complaint.
Adam Blinick, who leads Uber’s state and local public policy team for the United States and Canada, stated: “As this lawsuit shows, we won’t hesitate to act when we uncover misconduct on our platform.” Uber argues that “fraud and legal abuse raise costs for everyone.”
The company claims that approximately 45% of the fare of every Uber ride in Los Angeles County goes to mandated insurance costs, driving up prices for riders and reducing earnings for drivers.
The lawsuit details a few specific cases to illustrate the alleged scheme. For example, the complaint states that following a December 2019 accident with negligible vehicle damage where no injuries were initially reported, the client was eventually directed to undergo two back surgeries with total medical bills exceeding $556,000. An independent medical evaluation concluded the surgery was medically unnecessary and the charges were ten times the accepted norms.
The complaint further states that after a low-speed March 2019 accident where both parties denied injuries to the responding officer, the client was directed to undergo spinal surgery. The surgeon recommended a $226,000 lumbar decompression procedure during a telehealth appointment without conducting a physical exam.
Uber’s lawsuit includes claims under the federal RICO (Racketeer Influenced and Corrupt Organizations) statute, alleging violations of mail and wire fraud statutes. The company is seeking monetary damages, equitable relief, and injunctive measures to prevent future alleged misconduct.
Additional Reading
Uber v. Downtown LA Law, et al. Complaint (July 21, 2025)
Uber dials up new fights with plaintiffs lawyers, Reuters (July 24, 2025)
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