Litigation > False Claims Act/Qui Tam Defense > State FCA Resource Center > People ex rel. Allstate v. Dahan
07 Mar '13

People ex rel. Allstate v. Dahan, Case No. BC-397695 (L.A. Sup. Ct.): On November 6, 2012, a court awarded Allstate Insurance Company over $7 million in a suit alleging that a chiropractor, Daniel H. Dahan, D.C., and his company, Progressive Diagnostic Imaging, Inc. prepared fraudulent medical reports and invoices in violation of the Insurance Frauds Prevention Act (IFPA) (Cal. Ins. Code 1871.7) and Unfair Competition Law (UCL) (Cal. Bus. & Prof. Code 17200).

Allstate alleged that the defendants prepared fraudulent medical reports that were given to referring chiropractors for submission to Allstate in support of its policyholders’ personal injury claims, and that the reports improperly inflated the settlement value of these claims. Allstate also alleged that defendants billed for services not performed, up-coded, and double-billed. After a bench trial, the court ruled that Allstate proved that 487 claims violated the IFPA and the UCL. The court awarded Allstate damages and penalties under the IFPA in the amount of: (1) $10,000 per fraudulent claim, totaling $4,870,000; (2) an assessment of three times the amount billed for each claim, totaling $918,516.78; and (3) attorneys’ fees, costs, and investigation expenses totaling $1,222,151,62.