Racketeering case against NYC injury lawyers dismissed

A New York judge has dismissed a racketeering lawsuit against lawyers accused of driving up insurance costs by faking accidents, saying the plaintiff insurance companies lacked standing to bring such a case.

Roosevelt Road Re and Tradesman Program Managers sued William Schwitzer & Assoc. under the federal Racketeer Influenced and Corrupt Organizations (RICO) statute, saying the law firm participated in a widespread scheme to recruit plaintiffs, many of them illegal immigrants, to file fraudulent injury suits. The insurers have filed RICO claims against several other law firms, saying they foot the legal defense costs every time one of their customers is sued.

But federal judge Brian Cogan ruled in a Feb. 18 decision plaintiffs are too far removed from the scheme to file RICO claims. Roosevelt Re is an offsh...