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GEICO sues Queens pharmacy alleging more than $2 million in No-Fault fraud
GEICO says the pharmacy billed for pain products at inflated prices, and it seeks about $997,800 in refunds plus treble damages under a civil RICO claim.
GEICO has filed a lawsuit accusing a Queens pharmacy and related parties of running what it calls a large, ongoing fraudulent scheme that exploited New York's No-Fault auto-insurance system, according to Insurance Business.
The complaint, filed July 16, 2026, alleges the pharmacy billed more than $2 million for pain products the insurer says were fraudulent, and that the scheme relied on the No-Fault mechanism that allows benefits to be assigned to providers that bill the insurer directly.
GEICO says the pharmacy focused on a short list of high-priced products that it characterizes as fraudulent pharmaceuticals, and it alleges those billed amounts reflected inflated wholesale pricing while over-the-counter lidocaine options were not recommended.
The insurer is seeking about $997,800 it says it already paid, a declaration voiding roughly $613,100 in pending claims, and it asks that civil RICO damages be trebled to about $2,993,400, while noting the allegations have not yet been tested in court.