Federal Court Grants Insurer’s Injunction in No-Fault Insurance Fraud Suit Against Medical Providers

In its suit against multiple providers, GEICO asserted that the providers had submitted thousands of fraudulent and unlawful no-fault insurance charges in New York and New Jersey. The Eastern District of New York granted a preliminary injunction in favor of GEICO, finding that it had shown a likelihood of success on the merits of its claim—that the defendants submitted fraudulent no-fault insurance claims. GEICO alleged the medical services were not medically necessary, were performed under improper control by laypersons and involved forged documentation. 

The court held that GEICO would suffer irreparable harm without injunctive relief due to the risk of continued fraudulent billing and collection actions. It also rejected the argument that a pending case (Mayzenberg) would impact this decision, finding GEICO’s allegations in this case broader and independently sufficient. 

The decision underscores the judiciary’s willingness to grant injunctive relief in cases where insurance fraud is substantiated by comprehensive and multifaceted allegations. 

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