Los Angeles, CA — Uber has filed a sweeping federal racketeering (RICO) lawsuit against two prominent Los Angeles law firms and an orthopedic spine surgeon, accusing them of orchestrating an elaborate scheme to inflate personal injury claims and extract massive settlements from the rideshare company.
The defendants named in the suit are Downtown LA Law Group, The Law Offices of Jacob Emrani, and Dr. Greg Khounganian, an Encino-based spine surgeon. According to Uber, the parties coordinated to push injured claimants into medically unnecessary and overpriced spinal surgeries, generating inflated bills and falsified records to boost legal settlements.
In a statement, Uber said the alleged scheme has “driven up costs for riders and drivers across L.A. while leaving patients exposed.”
The RICO filing details three specific cases illustrating what Uber calls a repeated pattern:
Claimant A was involved in a minor accident deemed non-injurious by police. Yet, attorneys allegedly steered the claimant to Dr. Khounganian, who performed spinal surgeries totaling $550,000 — procedures independent experts later found unnecessary and billed at up to 10 times normal rates.
Claimant B, who reported no pain after an accident, was scheduled for a $226,000 lumbar procedure following a telehealth consult with Dr. Khounganian. Their total medical costs ballooned to over $330,000.
Claimant C returned home to St. Louis after a minor incident, was reportedly pain-free, and appeared dancing in a music video online. Nonetheless, Dr. Khounganian allegedly paid for Claimant C and their mother to fly back to LA for a $108,000 spinal procedure, later deemed to be worth only $10,374.98.
Uber’s complaint alleges this playbook was used repeatedly: lawyers referred clients to select medical providers, unnecessary surgeries were performed, bills were inflated, and secret agreements were hidden from courts and insurers.
The rideshare company claims that attorneys and doctors profited handsomely while claimants saw minimal compensation.
This marks Uber’s third federal RICO lawsuit of the year, following similar filings in New York and Miami, as the company intensifies efforts to combat what it views as widespread abuse of personal injury litigation.
Uber argues that these fraudulent practices have significantly driven up its insurance costs, especially in California. The company points to Los Angeles County as the most expensive insurance region in the world, with 45% of every rider fare going toward insurance — compared to just 4% in Boston and an average of 32% nationwide.
No immediate comment was available from the named law firms or Dr. Khounganian at the time of publication. The case is expected to draw wide attention given its implications for insurance fraud, legal ethics, and the high cost of rideshare services in major urban centers.
