Plaintiffs' law firm must face racketeering lawsuit by Uber, FedEx

Fedex
Uber Technologies,Inc.

Fedex

FDX

0.00

Uber Technologies,Inc.

UBER

0.00

By David Thomas

- A Philadelphia-based lawyer and his personal injury firm must face a lawsuit by Uber UBER.N and FedEx FDX.N claiming they worked with doctors and other providers to file fraudulent personal injury claims against the companies, a federal judge ruled on Monday.

U.S. District Judge Mark Kearney in Philadelphia denied a motion to dismiss the case by lawyer Marc Simon, his firm Simon & Simon and a group of medical providers. Uber and FedEx allege that Simon directed his clients to a "network of corrupt medical providers" who exaggerate injuries and create false medical records.

Kearney said while claims made in lawsuits are generally considered protected speech under the First Amendment of the U.S. Constitution, "not all conduct leading to a lawsuit can be litigation activity with immunity."

Uber said in a statement it was glad Kearney "refused to let the defendants back out of answering for the many instances of fraud we allege in our RICO complaint." A spokesperson for FedEx did not immediately respond to a request for comment.

Dan Rhynhart of Blank Rome, who represents Simon and his firm, said in a statement that Kearney's ruling was not unexpected.

"We look forward to proving those allegations are false, that Marc Simon and his law firm acted appropriately and in the best interest of their clients, and that Uber has filed this lawsuit for an improper purpose: to deter accident victims from suing Uber for injuries caused by its drivers’ negligence," Rhynhart said.

Uber and FedEx have mounted similar lawsuits against law firms in Los Angeles, Miami and New York federal courts alleging lawyers worked in conjunction with medical providers to file bogus and exaggerated claims against them.

The companies alleged that Simon directs clients to certain providers whose unnecessary treatments or false diagnoses inflate the value of their claims, which could result in a larger settlement. Simon and his firm allegedly direct these medical providers to create fraudulent documents which are then used as the basis of litigation, according to FedEx and Uber.

The companies alleged violations of the federal anti-racketeering law known as RICO. Damages under RICO can be tripled — Uber and FedEx are seeking an unspecified amount of general and punitive damages.

Simon and his firm have denied wrongdoing. In their motion to dismiss, the defendants argued that Uber is using "scorched earth attacks" against lawyers and doctors, saying the company will "destroy your career — call you a fraud, accuse you of criminal conduct, seek 'eight figures' in damages, and demand the surrender of your professional license."