Three Allstate companies filed a 231-page RICO complaint in the Eastern District of Michigan against a clinic network, its labs, its pharmacy, its brace supplier, and the referral line 1-800-PAIN-800. A brace that retails near $30, allegedly billed at $799 to $1,850, is the exhibit for the pattern.
On June 19, 2026, three Allstate companies filed a 231-page racketeering complaint in federal court in Detroit against a network of clinics, labs, a pharmacy, a brace supplier, and one phone number. The case is Allstate Insurance Company v. Select Medical Group of Michigan PLLC, Eastern District of Michigan case 2:26-cv-12051, and it asks the court for treble damages under 18 U.S.C. 1964(c). The complaint alleges billing for care that was, in Insurance Business America's account of the filing, never delivered, not medically necessary, or "not lawfully rendered" under Michigan's No-Fault Act. One line item pleaded in the complaint, in the same account of the filing, prices the whole model: a brace that retails near $30, billed at $799 to $1,850. The phone number Allstate wants a Detroit jury to dial is 1-800-PAIN-800.
The posture shift matters more than any single line item. Allstate is the payer in this arrangement. It spent years receiving these bills, adjusting these claims, and defending no-fault disputes one file at a time in Michigan courts. Now it is the plaintiff. It has converted a drawer of claim fights into a single federal racketeering case, with the entire alleged operation pleaded as connected enterprises and every bill placed inside one theory.
The docket does its own talking. CourtListener lists the nature of suit as 470 Racketeer/Corrupt Organization and the cause as the RICO Act, 18 U.S.C. 1962. The complaint runs 231 pages. According to Insurance Business America's account of the filing, the pleaded arithmetic is specific: Michigan First allegedly billed Allstate more than $786,000 for laser therapy since February 2024, and Greenfield Labs and Tox Testing allegedly billed $3,976 for a single presumptive urine drug test. The same coverage reports the suit pleads common-law fraud, civil conspiracy, and unjust enrichment alongside the federal counts. No aggregate damages figure has surfaced in the coverage. Allstate priced the parts and left the total for the treble math.
Trial drama, nuclear verdicts, and the plaintiff-firm tactics behind them. Court-reporter prose, no consultant filler. Read by litigation leaders at F500 legal departments and national carriers. Free.
The tactic on trial is the referral line. The complaint alleges, per Insurance Business America, that one of the defendants owns 1-800-PAIN-800 and that the line advertised "Our Goal Is To Get You Healthy & Wealthy After A Car Accident" while steering callers toward the defendant clinics for treatment they did not need. That is the medical-mill design in one sentence. The intake engine is not a physician's referral. It is a marketing asset the providers allegedly control. The complaint names four members of the Dehko family, Norman, Sabah, Lawrence, and Jordan, along with physician Pedro Toweh, as alleged participants, and each appears in this story only as the filing pleads them. No defendant has answered, and nothing in the complaint has been proven.
Follow the alleged money path and the design gets clearer. A caller dials the line after a crash. The line allegedly routes the caller into the network: clinic visits, laser therapy sessions, urine drug tests, braces. Each stop generates a bill, and under Michigan's no-fault system each bill routes to an auto insurer like Allstate. RICO changes what those bills cost to defend. If a jury finds a fraudulent enterprise, every dollar of proven loss triples under section 1964(c), and discovery reaches across the whole network at once instead of one clinic file at a time. That is why the brace carries the headline. A $30 device billed at $1,850 is not a coding dispute. Pleaded at network scale, it is Allstate's exhibit for a pattern.
The next move belongs to the defense. The complaint itself has not yet appeared on RECAP, so the 231 pages remain visible mainly through the docket and the trade coverage quoting them. Once service lands, the defendants choose: answer the enterprise allegations, or move to dismiss and attack the pattern pleading first. That fight is where carrier RICO cases live or die. Judge Mark Kearney, last seen on this series keeping Uber's RICO suit against Simon & Simon alive in Philadelphia, let the enterprise theory through. The Tradesman reinsurer cases in New York died on standing.
This is the scoreboard's newest row. Allstate, last seen on this board in April filing Allstate v. Roopani in Houston over $7.9 million in alleged no-fault billings, now opens row six in Detroit with 231 pages of enterprise allegations. Row five went up in June when NY Marine sued Case Cash Funding in Manhattan, taking the series from clinics to the funding side. Row six turns the series back on the intake engine itself. Status on record: filed June 19, treble damages demanded, no responsive pleading yet. The insurer-as-plaintiff wave keeps adding plaintiffs. The board has six rows now. Watch the phones.
The Executive Briefing is six questions. It shows you exactly where the gaps are.
Take the Executive Briefing →Trial drama, nuclear verdicts, and the plaintiff-firm tactics behind them. Court-reporter prose, no consultant filler. Read by litigation leaders at F500 legal departments and national carriers. Free.