NYC Sues Personal Injury Law Firm in Landmark Federal RICO Case

New York City's Law Department filed a federal civil lawsuit against Manhattan personal injury firm Asher and Associates, marking the first time the city has used the federal Racketeer Influenced and Corrupt Organizations Act, known as RICO, to fight personal injury fraud. According to the complaint, the firm filed at least 15 bogus notices of claim over roughly a decade, alleging clients were injured by defective city streets or sidewalks when medical and police records showed injuries came from car accidents, fights, and other unrelated causes. In one case, a $3 million demand was filed for a Brooklyn bicycle crash that hospital records showed had actually resulted from a fight. Corporation Counsel Steven Banks stated that personal injury laws exist to protect actual victims, not to line the pockets of people making fraudulent claims at taxpayer expense. The city is seeking treble damages under RICO as well as city and state False Claims Acts. Asher and Associates denied the allegations, calling the suit an attempt to chill legitimate personal injury work. DOT Commissioner Mike Flynn vowed to hold bad actors accountable to the full extent of the law.