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Digital EditionNews + Notes: RICO Lawsuits Rising, AV Safety Update and More
RICO Lawsuits Are on the Rise
The insurance industry is witnessing a surge in lawsuits alleging fraud and violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), particularly in jurisdictions like Florida and New York, Reuters reported.
These lawsuits — which are initiated by insurers, insureds and defense attorneys — are aimed at investigating potentially fraudulent personal injury claims.
In recent years, national insurance providers have secured favorable settlements and judgments in lawsuits alleging fraudulent billing practices in connection with exaggerated or manufactured personal injury accident claims. Notably, automobile insurance companies like State Farm and GEICO have initiated federal RICO lawsuits in the Middle District of Florida, alleging fraudulent bills and supporting documentation for services rendered to collect on personal injury protection benefits.
These lawsuits have significantly impacted the insurance industry, prompting defense attorneys and attorneys for claimants to respond in innovative ways. Defense attorneys have started including an affirmative defense of fraud in their pleadings and using various discovery devices to uncover potential fraud. Meanwhile, attorneys for claimants have started filing pretrial motions seeking to preclude any reference of the RICO lawsuits on the basis of prejudice.
The surge in RICO and fraud lawsuits reflects a broader trend in the insurance industry towards more proactive and aggressive strategies to combat potentially fraudulent claims. As these lawsuits continue to unfold, they are likely to shape the legal strategies employed by insurers, insureds and defense attorneys in dealing with personal injury claims.
Audit Finds Vermont Unprepared for Disaster
A recent report from the Vermont auditor’s office indicated that the state’s five-year hazard mitigation plan, which is aimed at reducing the risk from natural disasters, has seen significant shortcomings; only a third of the 96 actions and half of the priority actions from the 2018 plan were completed by last year, according to the Associated Press. The state’s failure to execute many of these actions casts doubt about its preparedness for natural disasters.
The hazard mitigation plan, which is developed by Vermont Emergency Management every five years, identifies natural hazards facing the state and outlines steps to reduce risk. It also serves as a resource for state agencies to carry out these actions. However, the audit revealed that many of these actions remain incomplete, suggesting the plan has not been effective in reducing the state’s risk from natural disasters.
Between 2011 and 2023, Vermont experienced 21 federally declared disasters, including floods, winter storms and the COVID-19 pandemic. The state’s failure to complete priority actions such as developing building standards for resilient design and construction or creating an inventory of critical headwater and floodplain storage areas has led to missed opportunities to reduce risk.
The report cites staff turnover and the COVID-19 pandemic as reasons for the incomplete actions. However, the state’s lack of progress has nonetheless raised concerns among lawmakers, particularly in communities like Montpelier and Barre, which have been hit hard by flooding.
In addition to identifying the need for better oversight and communication among the agencies responsible for disaster preparedness and mitigation, the audit also calls for greater prioritization of disaster mitigation in the next state budget.
Waymo Touts Its AVs’ Safety
In September, autonomous vehicle company Waymo launched an online data hub to demonstrate the safety of its self-driving taxis, IoT World Today reported. This followed a surge in Waymo’s operations amid public skepticism.
The data hub, a first in the autonomous driving industry, provides a comparative analysis of crash rates between Waymo’s self-driving taxis and human drivers in the cities where they operate. Waymo’s fleet of 300 AVs had covered over 15.4 million driverless miles by the end of June, more than doubling the 7 million miles it had recorded as of December 2023.
Despite a few high-profile incidents involving autonomous vehicles, Waymo’s data suggests that its self-driving taxis are considerably safer than human-operated vehicles. In Phoenix and San Francisco, two cities with significant Waymo operations, the company’s taxis were involved in 84% fewer crashes with airbag deployment, 73% fewer injury-causing crashes and 48% fewer police-report crashes than human drivers.
The data hub also provides context to the crash figures reported to the National Highway Speed Traffic Administration (NHTSA), including research showing that 43% of the crashes it reported involved a change in velocity of less than 1 mph, indicating minor bumps or scrapes.
While not developed by a third party, the data and methodology used by Waymo have been peer-reviewed, lending more credibility to the company’s safety claims. The Insurance Institute of Highway Safety has welcomed the publication of these findings, recognizing the value of transparency to foster public trust, support independent research and ultimately pave the way for greater acceptance of autonomous vehicles. &
