In a new feature for Claims Management magazine, two attorneys address a new national trend among some plaintiff’s attorneys in workers’ compensation: utilizing Racketeer Influenced and Corrupt Organizations Act, or RICO against self-insured employers, TPAs and employer retained experts. According to the article, claiming a violation of RICO allows plaintiffs to seek treble damages and attorney’s fees and ask for a jury trial, things that they would not be entitled to under most workers’ compensation statutes. The theory has gained some traction in federal district courts. For example, Walmart, Claims Management Inc. (Walmart’s claims management unit), and Concentra Health Services paid $8 million to settle a RICO class-action case brought on behalf of Walmart employees who claimed that they were wrongfully denied appropriate medical treatment for work-related injuries.
Read the full feature here.