Uber pursues a RICO case against a personal injury lawyer

Uber Technologies (UBER) alleges that Philadelphia lawyer Marc Simon, his firm Simon & Simon, and a network of medical providers coordinated to manufacture or exaggerate injuries from accidents involving Uber and FedEx (FDX) drivers. The claims include that the lawyer used misleading medical records to pursue inflated personal-injury cases.

The federal lawsuit, filed in Pennsylvania in September, asserts civil racketeering claims under the Racketeer Influenced and Corrupt Organizations Act. Simon and his firm have denied wrongdoing.

Notably, the company can pursue civil racketeering claims against the Philadelphia-based lawyer even though the company's insurer footed its defense bills. U.S. District Judge Mark Kearney held this week that the rideshare giant has standing to pursue the case since insurance payments made on Uber’s behalf did not eliminate its right to pursue claims over the allegedly fraudulent litigation.

Uber (UBER) welcomed the ruling, while Simon’s lawyer said the defense was disappointed. The trial is scheduled for March 2027.

Shares of Uber (UBER) are down 12% on a yearo-to-date basis. The Seeking Alpha Quant Rating on Uber (UBER) is flashing Strong Buy.

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