Score one for the GEICO gecko. A federal court in Florida has refused to dismiss a case brought by auto insurer giant GEICO accusing two chiropractic clinics of a criminal scheme to stage auto accidents and exaggerate injury and medical claims in order to defraud auto insurance companies.
The alleged scheme came to light when a physician at KJ Chiropractic Center alerted the clinic that bills in his name were being submitted for treatment he never provided. KJ allegedly responded by firing him.
GEICO sued KJ and Wellness Pain & Rehab, alleging federal and state RICO violations, unfair trade practices, conspiracy, fraud, and unjust enrichment. The defendants moved to dismiss, relying on the heightened pleading standards for fraud claims imposed by Federal Rule of Procedure 9(b).
On March 6 the court denied the motion to dismiss, ruling that the allegations satisfied the 9(b) standards. GEICO v. KJ Chiropractic, Middle District Florida, No. 6:12-cv-01138-DAB.
Don’t mess with the gecko.