Preparing False Medical Reports to Defraud Insurers is not Protected Activities

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Strategic Lawsuits Against Public Participation (SLAPP suits) are meritless lawsuits designed to punish parties for constitutionally protected activities (free speech or the right to petition). A defendant can seek to strike a SLAPP suit by filing an anti-SLAPP motion. (Code Civ. Proc., § 425.16.) The defendant must first show the lawsuit arises from its protected activities; if so, the plaintiff can defeat the anti-SLAPP motion by showing its lawsuit has merit.

In The People ex rel. Allstate Insurance Company et al., Plaintiffs and Respondents v. Sonny Rubin, M.D., et al., G059446, California Court of Appeals, Fourth District, Third Division (June 28, 2021) Allstate Insurance Company et al. (Allstate) filed a complaint on behalf of itself and the People (qui tam) against Dr. Sonny Rubin and related medical providers (Rubin). 

ZALMA OPINION

Insurance companies like Allstate, frustrated by the failure of state prosecutors to charge fraud perpetrators with the crime of insurance fraud, are becoming proactive by suing the fraudsters in qui tam lawsuits to take the profit out of the crime. Dr. Rubin attempted to avoid the qui tam action with an Anti-SLAPP motion only to find his lien agreement turned his involvement into regular business activities not protected by the Anti-SLAPP laws. Insurance Fraud is a very profitable business for the perpetrators and, as a result, they have funds to fight attempts to reduce or deter their attempts at fraud. Allstate refused to be deterred and should be commended for being proactive against insurance fraud.