By Jack Tomczuk
Uber is planning to amend its racketeering lawsuit against a Philadelphia attorney the rideshare company alleges conspired with medical providers in an attempt to turn minor crashes into million-dollar paydays.
The move to refile the complaint came after Simon & Simon PC – the firm directing the supposed scheme – asked a federal judge to dismiss the case, which its legal team characterized as “outrageous, shameful, and a gross departure from civility in the profession.”
“Uber’s approach to silencing injured victims and their lawyers is clear: act first, don’t worry if it’s true or not,” said Marc I. Simon, who founded the law practice in 2010, in a statement. “With unlimited resources, failed attempts are simply followed by more attempts.”
Simon suggested Uber devote its litigation spending to efforts designed to improve driver safety. In comments earlier this month, he said the lawsuit, alongside similar complaints filed against firms across the country, is a strategy to “intimidate injured victims and bully their lawyers.”
An Uber spokesperson told Metro that the Simon & Simon motion to dismiss offers “no real response to the detailed and credible allegations of fraudulent conduct in our RICO complaint” and instead focuses on “unpersuasive technical arguments about where, how, and by whom they could be sued.”
“We are confident in the merits of our case and look forward to seeing the defendants in court,” the spokesperson added, in a statement.
Representatives from the company did not respond when asked why Uber intends to alter its initial lawsuit.
Its lawyers notified the court Dec. 22 that an amended complaint would be forthcoming. U.S. District Court Judge Mark Kearney, in a subsequent order, said he expects the new filing will “address the alleged pleading deficiencies” following a meeting between the sides. The amendment must be submitted no later than Jan. 12.
Uber, in the original lawsuit, filed in September, claimed that Simon & Simon funneled clients to Dr. Clifton Burt, of Premier Pain & Rehab Center, and chiropractors Ethel Harvey and Daniel Piccillo, both of Philadelphia Spine Associates LLC. All three were named as defendants in the case.
The law firm scheduled patients’ visits in bulk for Burt, who allegedly prescribed bogus treatments, according to Uber.
Using fraudulent paperwork from Burt and the chiropractors, another doctor and defendant, Lance Yarus, would develop a report concluding that the person needs a lifetime of ongoing care due to the crash, the rideshare company claimed.
Yarus, Uber asserts, completed more than 1,200 exams for Simon & Simon over a three-year period, in exchange for $1.5 million.
Attorneys for Simon & Simon issued a sharp rebuke in their Dec. 12 motion to dismiss: “Disguised as a lawsuit, which is utterly baseless, this proceeding is in reality a business tactic – and a particularly ugly and vicious one at that – to suppress lawsuits arising from careless Uber drivers.”
The Simon team argued that Uber is trying to relitigate a batch of state-level personal injury cases in federal court. Of the 18 lawsuits cited in the company’s complaint, nine have been settled; four are pending; three have been decided in favor of the plaintiff; a jury or judge sided with the defense once; and another case was dismissed, according to Simon & Simon.
None of the payouts came from Uber or its insurance carrier, the law firm noted. Simon & Simon voluntarily dismissed the company from the cases before any had concluded.
But Uber has described the decision as a cover-up. Simon & Simon dropped Uber from nearly 30 cases after its legal team sought to subpoena Burt for a deposition earlier this year, company officials said.
Simon’s counsel believes the rideshare giant targeted him because of two recent sanctions against his firm in the Eastern District of Pennsylvania, involving non-Uber cases.
Uber has filed similar complaints in recent months against law firms based in New York, Los Angeles and Miami under the federal Racketeer Influenced and Corrupt Organizations (RICO) Act.
Though most well-known as a tool for tackling organized crime, the RICO statute has a civil provision that allows the court to dissolve an enterprise; implement restrictions certain individuals; and order triple the typical amount of damages.
Company officials have said the rideshare corporation’s insurance policy limits are higher than almost any other vehicle on the road, creating an incentive for personal injury lawyers to sue. The resulting litigation and rising insurance costs, Uber says, is driving up prices for customers.