Allstate claims fraud against medical billing co.

FARMINGTON HILLS, Mich._Insurer Allstate Corp. said Wednesday it filed a complaint against a Michigan medical billing company, accusing it of insurance fraud and billing Allstate for unnecessary services.

Allstate's complaint alleges Global Medical Billing of Sterling Heights, Mich., committed insurance fraud, misrepresentation, and unjust enrichment. According to Allstate, Global Medical Billing solicited people who were involved in motor vehicle accidents, and sent them to clinics controlled by non-medical personnel. Those personnel directed them to receive unnecessary services including physical therapy, transportation, and testing, Allstate said.

Global Medical Billing did not immediately return requests for comment.

Allstate said it is seeking to recover payments to Global Medical Billing of more than $380,000. It also looking for exemplary damages and attorneys' fees. It filed a claim under the Racketeer Influenced and Corrupt Organizations Act, or RICO, which would allow Allstate to receive damages equal to as much as three times the amount it paid.

The complaint was filed in U.S. District Court, Eastern District, Southern Division.

Allstate shares rose 50 cents to close at $30.11.