Protecting American Consumers Together (PACT) said on May 6 that courts and regulators are increasing efforts to address unnecessary spinal surgeries linked to staged accident schemes used to inflate personal injury lawsuit payouts.
The organization made the comments in a post on X, claiming these schemes have long relied on networks of lawyers, medical providers, and lien-based treatment to increase settlement demands through unnecessary procedures.
Staged auto accidents and related insurance fraud cost U.S. insurers an estimated $20 billion, with total fraud costs exceeding $300 billion across all insurance sectors, according to the Insurance Journal.
Recent federal lawsuits in New York have accused orthopedic surgeons of performing unnecessary spinal surgeries on individuals involved in allegedly staged motor vehicle crashes. In one case, a Deer Park surgeon was named in a racketeering suit by FedEx related to sham accidents and inflated medical bills, according to Newsday.
Protecting American Consumers Together is a national advocacy organization focused on civil justice issues and legal reform initiatives. The group says it works on public education campaigns related to litigation practices, consumer issues and transparency in the legal system, according to its website.
