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Allstate sues over alleged $993K No-Fault billing scheme in New York
Allstate says the alleged operators used nurse practitioners' licenses across 71-plus locations and sought to conceal related claims through multiple entities and tax identifiers.
Allstate has filed a lawsuit alleging a large-scale No-Fault billing scheme that it says relied on two nurse practitioners' licenses while operators, it claims, were not properly licensed to control medical practices.
In a complaint filed July 24, 2026, in the U.S. District Court for the Eastern District of New York, the insurer accuses two nurse practitioners, five medical entities and ten unidentified operators of submitting claims for services Allstate says were medically unnecessary or performed, “if performed at all.”
Allstate alleges the structure involved management defendants recruiting the nurse practitioners around 2020 and 2023 to serve as nominal owners of professional corporations and to bill through a sole proprietorship, using multiple entities and tax identification numbers to avoid detection.
The insurer says the providers operated at more than 71 locations across the New York City metropolitan area, and that the billing involved spinal X-rays with flexion and extension views, along with nerve-conduction and electromyography testing. Allstate alleges the defendants submitted more than $993,430.93 in charges and that it paid $327,887.44.