Liberty Mutual and Affiliates File Lawsuit Alleging Widespread Michigan No-Fault Insurance Fraud
Liberty Mutual and affiliates – In a bold move shaking up Michigan’s auto insurance landscape, Liberty Mutual and its affiliates have unleashed a federal lawsuit accusing a local medical network of masterminding a massive fraud scheme. This high-stakes battle, filed amid rising concerns over no-fault insurance abuse, could reshape how insurers combat fraudulent billing practices statewide.
The lawsuit, lodged on August 12, 2025, in the U.S. District Court for the Eastern District of Michigan, names Anesthesia Services Affiliates, P.L.L.C., along with entities like Central Home Health Care, Inc., Michigan Ambulatory Surgical Center, and Dr. Louis Radden, D.O., as key defendants. Liberty Mutual, joined by subsidiaries such as Liberty Mutual Fire Insurance Company, Safeco Insurance Company of America, and State Auto Property and Casualty Insurance Company, claims these parties submitted bogus medical records and inflated invoices through the mail. They allege services were either never provided, medically unnecessary, or charged at outrageous rates under Michigan’s No-Fault Act, which mandates coverage for auto accident-related treatments. Key trending keywords like Liberty Mutual lawsuit, Michigan insurance fraud, no-fault fraud, fraudulent billing, and RICO violations pepper the complaint, highlighting a coordinated effort to siphon funds from insurers.
Liberty Mutual and affiliates | Sues Michigan Medical Network in Sweeping No-Fault Insurance Fraud Case
Court documents paint a picture of a sophisticated operation. Anesthesia Services Affiliates, based in Oak Park and controlled by Dr. Radden, allegedly collaborated with Spine Specialists of Michigan and other affiliates to exploit the system. Insurers argue this not only violates state law but erodes trust in Michigan’s unique no-fault framework, where drivers enjoy unlimited medical benefits but face some of the nation’s highest premiums. No specific damage amounts were disclosed in initial filings, and the defendants have yet to respond publicly. The case remains in its early stages, with no rulings issued.
This isn’t Liberty Mutual’s first rodeo in tackling alleged fraud. Just last year, on October 28, 2024, the company targeted Accurate Care, L.L.C., in a similar suit invoking the Racketeer Influenced and Corrupt Organizations (RICO) Act for phony billing tied to auto claims. Another action in June 2025 against Dehko Investment, Inc., echoed these accusations, signaling a broader crackdown. Industry watchers see this as part of a growing trend where insurers aggressively pursue legal remedies to stem losses from organized schemes.
Experts in the insurance sector are sounding alarms. “These lawsuits expose deep-rooted vulnerabilities in Michigan’s no-fault system,” said one anonymous industry analyst familiar with Midwest markets. They point out that fraud drives up costs, potentially adding hundreds of dollars to annual premiums for everyday drivers. Public reactions, gleaned from online discussions, range from outrage over rising insurance rates to calls for legislative reforms. On social media platforms, users have vented frustration, with some labeling it “yet another scam hurting working families.”
For U.S. readers, especially those in states with similar auto insurance models, the implications hit close to home. Michigan’s woes could influence national conversations on fraud prevention, potentially affecting premiums and policy availability elsewhere. Economically, unchecked schemes like this burden small businesses reliant on affordable coverage and strain healthcare resources. Politically, it might fuel debates in Lansing and Washington about tightening regulations, impacting lifestyle choices like vehicle ownership and road safety. Technology plays a role too, as insurers increasingly deploy AI-driven tools for claims management to detect anomalies early.
User intent here seems clear: People searching for updates on Liberty Mutual lawsuit or Michigan insurance fraud want reliable facts without the fluff. Managing this story means sticking to verified details while keeping an eye on court developments. As the case unfolds, it could prompt insurers nationwide to refine their anti-fraud strategies, blending human oversight with advanced tracking to safeguard policyholders.
In summary, this lawsuit underscores the ongoing fight against no-fault fraud in Michigan, with Liberty Mutual leading the charge. Looking ahead, resolutions could lead to stricter oversight, lower fraud incidents, and more stable insurance markets—benefiting drivers across the board.
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A coalition of major insurers, led by Liberty Insurance Corporation and its affiliates, has filed a lawsuit in the U.S. District Court for the Eastern District of Michigan on August 12, 2025, accusing a Michigan medical network of orchestrating a large-scale no-fault insurance fraud scheme. The plaintiffs, including Liberty Mutual Fire Insurance Company, Liberty Mutual Personal Insurance Company, LM General Insurance Company, LM Insurance Corporation, LM Property and Casualty Insurance Company, Safeco Insurance Company of America, Safeco Insurance Company of Illinois, The Liberty Surplus Insurance Corporation, State Auto Insurance Company of Ohio, State Auto National Insurance Company, and State Auto Property and Casualty Insurance Company, allege that the defendants engaged in a coordinated effort to defraud them through fraudulent medical billing practices under Michigan’s No-Fault Act (Mich. Comp. Laws § 500.3101 et seq.).
The lawsuit targets Anesthesia Services Affiliates, P.L.L.C., Central Home Health Care, Inc., Central Home Health Care Services, Inc., Michigan Ambulatory Surgical Center, L.L.C. (operating as Specialty Surgical Center), Spine Specialists of Michigan, P.C., and Dr. Louis Radden, D.O. According to the complaint, these defendants submitted false and fraudulent medical records, bills, and invoices via U.S. Mail, seeking payments for treatments and services that were either not rendered, medically unnecessary, fraudulently billed, or charged at exorbitant rates. The insurers claim this scheme violates Michigan law and undermines the integrity of the state’s no-fault insurance system, which governs benefits for medical services related to auto accidents.
The complaint highlights that Anesthesia Services Affiliates, a professional limited liability corporation based in Oak Park, Michigan, is owned and controlled by Dr. Radden. The insurers allege that the defendants acted individually or in concert to perpetrate the fraud, though specific policy clauses or monetary damages were not detailed in the available complaint excerpts. The case remains pending, with no response yet from the defendants and no court findings of fact or law.
This lawsuit follows a pattern of legal actions by Liberty Mutual and its affiliates to combat alleged fraud in Michigan’s no-fault insurance system. For instance, on October 28, 2024, Liberty Mutual Personal Insurance Company and others filed a similar suit against Accurate Care, L.L.C. and related entities, alleging violations of the Racketeering (RICO) Act (18 U.S.C. § 1961) through fraudulent billing practices (Case No. 2:24-cv-12830). Another case, filed on June 4, 2025, against Dehko Investment, Inc. and others, also cites RICO violations for similar fraudulent activities (Case No. 2:2025cv11655).
Industry experts note that this litigation underscores the persistent challenge of organized fraud in Michigan’s no-fault insurance framework. As the case progresses, it may influence fraud prevention strategies and claims management practices across the insurance sector. Stakeholders are closely monitoring developments for potential impacts on Michigan’s insurance landscape and beyond.
By Sam Michael
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Source: Insurance Business America, August 18, 2025