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Allstate Sues Florida Brain-Injury Center, Claiming Fraud

Aug. 27 (Bloomberg) -- Allstate Corp., the second-largest U.S. auto insurer, is seeking fraud damages in a lawsuit alleging that a Florida brain-injury facility warehoused patients who were beaten and abused by staff.

The suit, filed Friday in U.S. District Court in Tampa, seeks $7.6 million that the insurer says it paid the Florida Institute for Neurologic Rehabilitation to treat its claimants, as well as triple damages under federal racketeering laws and other costs.

Allstate alleges patients from Michigan, which mandates unlimited lifetime medical benefits for automobile injury coverage, were recruited to the Florida facility through an aggressive marketing campaign that promised an array of services that were never provided.

Wayne J. Miller, an attorney representing the facility, known as FINR, said the company would not comment on matters in litigation.

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To contact the reporter on this story: David Armstrong in Boston at darmstrong16@bloomberg.net

To contact the editor responsible for this story: John Voskuhl at jvoskuhl@bloomberg.net

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