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Allstate sues four pharmacies over alleged no-fault pain cream fraud
Allstate and affiliates filed the suits on September 28, 2026, seeking recovery tied to more than $1.49 million in alleged overbilling and outstanding bills.
Insurance Business reports that Allstate and its affiliates have filed four federal lawsuits against Avi Pharmacy Corp., Castle Hill Drugs Inc., Frederick Community Pharmacy Inc., and H Plaza Pharmacy Inc., alleging a scheme exploiting New York's no-fault auto insurance system.
The lawsuits allege pharmacies billed for expensive topical pain creams that were medically unnecessary while cheaper alternatives were not prescribed, according to Insurance Business.
Each complaint includes a claim under the federal Racketeer Influenced and Corrupt Organizations Act, a law that can triple payouts if it is successfully invoked, the outlet said.
Insurance Business adds that the combined alleged exposure across the four cases totals more than $1.49 million, including $589,000 in claims Allstate says it already paid and should not have, plus approximately $903,000 in outstanding bills.