Allstate Insurance Company Awarded More Than $6 Million in Judgments Against South Florida Health Care Clinics

Mar 10, 2016, 09:00 ET from Allstate Insurance Company

WEST PALM BEACH, Fla., March 10, 2016 /PRNewswire/ -- After more than a decade of court battles, Allstate Insurance Company recently obtained a number of judgments in the 15th Judicial Circuit Court in Palm Beach County against multiple health care providers that Allstate asserted engaged in fraudulent and unlawful practices. The judgments were obtained by Allstate Insurance Company on behalf of its insureds in litigation they filed against Total Rehab and Medical Centers, Inc., Prosper Diagnostic Centers, Inc., and Family Medical and Rehab Centers, Inc.

The litigation, which led to the entry of these judgments was filed by Allstate pursuant to a far-reaching, 291-paragraph, multi-count Complaint originally filed back in 2004. In the Complaint, Allstate set forth a scheme by clinics to defraud policy holders who were treated at the defendant clinics under their Personal Injury Protection coverage afforded to them by Allstate. The conduct included billing for unlawfully rendered treatment and services; unsupervised staff and unlawful delegation of medical responsibilities; patient brokering; and up-coding and fraudulent billing.

The contentious litigation was vigorously defended by the clinics, and a six-week jury trial commenced in 2012, which resulted in a mistrial being declared for juror misconduct. Thereafter, a number of issues were elevated to the Fourth District Court of Appeals in this contentious battle in which Allstate stood firm in their resolve to see it through.

The judgments that were ultimately rendered in favor of Allstate included not only a recovery on the underlying damages, but also all of Allstate's attorney fees and court costs in pursuing this litigation. These judgments stand as a true testament to Allstate's unwavering resolve to fight fraud with no limitation on the length of litigation at the trial or appellate level.

The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer, protecting approximately 16 million households from life's uncertainties through auto, home, life and other insurance offered through its Allstate, Esurance, Encompass and Answer Financial brand names. Allstate is widely known through the slogan "You're In Good Hands With Allstate®." The Allstate brand's network of small businesses offers auto, home, life and retirement products and services to customers in the United States and Canada. In 2015, The Allstate Foundation, Allstate, its employees and agency owners gave $36 million to support local communities. Allstate employees and agency owners donated 250,000 hours of service across the country.

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SOURCE Allstate Insurance Company