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Allstate sues three New York pharmacies over alleged no-fault fraud
The insurer is seeking more than $414,000 in combined recovery and more than $703,000 in unpaid claims it wants declared void.
Allstate has filed three federal lawsuits against separate New York pharmacies, alleging they used illegal kickback arrangements with no-fault auto clinics to sell overpriced pain ointment, according to Insurance Business.
The complaints name four Allstate entities as plaintiffs, with defendants including Narrow Pharmacy Inc. in Brooklyn, Redfern Drugs Inc. in Far Rockaway, and Punjab Rx Pharmacy Inc. in South Richmond Hill.
Allstate says the alleged scheme involved billing hundreds of thousands of dollars for the prescription ointment, seeking more than $414,000 in combined recovery and more than $703,000 in unpaid claims that the insurer wants declared void.
All three complaints were filed September 30, 2026, in the US District Court for the Eastern District of New York. The outlet notes a pricing gap at the center of the cases, with the prescription pain ointment alleged to cost up to $1,900 compared with an over-the-counter version for under $20.