Uber Technologies (UBER) is suing a group of personal injury lawyers who it alleges have made fraudulent insurance claims against the company that have forced Uber to spend millions in legal fees, Bloomberg reported Monday, citing a case that was filed in the Central District of California.
Uber is accusing the lawyers of directing passengers to "pre-selected medical providers" who submitted inflated bills to treat negligible or non-existent injuries from minor collisions between 2019 and 2024, the report said.
Uber said the personal injury lawyers named in the case took advantage of a state-mandated $1 million rideshare insurance policy limit by fraudulently inducing "significantly larger settlement payments," according to Bloomberg.
This lawsuit is intended to "recover the full extent" of the millions of dollars of harm from the resulted defense costs and settlements, Bloomberg reported.
Uber did not immediately respond to an MT Newswires request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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