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Federal Court Denies Motion to Dismiss PSD Client’s Counterclaim in RICO Matter

A federal judge denied a motion to dismiss by Metropolitan Property & Casualty Insurance Company and the Commerce Insurance Company in a civil RICO case. PSD represents a large plaintiffs’ law firm. The firm brought claims against the insurance companies asserting that they improperly imposed prohibitions on healthcare providers’ cooperation with insurance claims by patients. As alleged, the insurance companies also purported to give criminal releases to those providers in return for those restraints, indicating that the insurers threatened the use of criminal charges in a civil context. The federal court found that the allegations stated plausible claims. Also, the federal court found agreed with PSD that the insurance carriers had inappropriately tried to combine multiple briefs in order to avoid page limitations.

The Court’s decision can be found here: 10 Order on Motions to Dismiss Counterclaims and to Strike