Auto Insurer’s $10M Fraud Claims Against Doctors Are Subject to Arbitration, Court Rules

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A federal appeals court has sided with three chiropractors in ruling that claims under New Jersey’s personal injury protection statute concerning insurance fraud are subject to arbitration.

GEICO has lost its bid to pursue litigation alleging fraud against the chiropractors.

The Third Circuit Court of Appeals reversed lower courts where GEICO alleged that the chiropractors defrauded it of more than $10 million by abusing the personal injury protection (PIP) benefits offered by its auto policies.

GEICO claimed that the clinics filed exaggerated claims for medical services, including sometimes for treatments that were never provided, ad

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