Insurers’ Fraudulent Transfers Claims Dismissed From RICO, False Billing Suit

Mealey's (March 1, 2021, 4:47 PM EST) -- DALLAS — A federal judge in Texas on Feb. 26 granted in part motions to dismiss filed by the executives of health care clinics, pharmacies and clinics accused by two insurance companies of engaging in a scheme to submit fraudulent bills through the use of kickbacks and illegal referrals, finding that while the insurance companies failed to sufficiently allege causes of action under the Texas Uniform Fraudulent Transfer Act (TUFTA) against the executives and pharmacies, the companies’ Racketeer Influenced and Corrupt Organizations Act (RICO) allegations were adequate to state a claim....