A report from the Commercial Carrier Journal discovered what appears to be an organized “litigation network” in which lawsuit lenders, plaintiffs’ lawyers, and doctors have created a system to inflate claims against insurance companies after trucking accidents.
A defense attorney named Zach Matthews uncovered communications between a doctor at Spine Center Atlanta, a lawsuit lending firm, and plaintiffs’ lawyers that included medical bills 2.5 to 3.5 times more than the average market rate. The medical clinic then presented bundled cases to lenders, who advanced payments to doctors. The defense attorney found that the clinic and lenders bundled 700 cases in one year, with each claim standing to make $100,000 each for a total of $70 million.
Matthews said the “legal referral services” offered by lawsuit lenders send potential cases to doctors who will “play ball.” “It is hard to believe this stuff is really happening,” he told the magazine.