Uber Technologies Inc. filed a federal racketeering lawsuit on July 20 in the U.S. District Court for the Central District of California, accusing several Los Angeles law firms and medical providers of participating in an alleged scheme to inflate personal injury claims tied to minor vehicle accidents involving Uber drivers.

The complaint names Downtown LA Law Group LLP, Gsk Spine, Radiance Surgery Center, The Law Offices of Jacob Emrani, and individuals including Greg Khounganian, Igor Fradkin, and Jacob Emrani. Uber claims the defendants directed injured passengers to preferred medical providers who allegedly performed unnecessary treatments and issued inflated bills. These medical expenses were then used, according to the suit, to support larger-than-warranted insurance settlement demands under California’s required $1 million coverage for rideshare services.

Based on the complaint, attorneys and clinics allegedly entered into undisclosed agreements that allowed both sides to profit from procedures billed well above market value. In some cases, Uber claims, the costs submitted were several times higher than typical rates.

Uber is seeking to recover what it describes as substantial losses related to past settlements and legal costs. The company claims the defendants specifically targeted Uber because of its high insurance limits and alleges the conduct remains ongoing.

This marks the third such lawsuit Uber has filed this year, making similar claims. Earlier cases were brought in New York and Florida, each alleging that law firms and clinics exploited the insurance structure governing rideshare companies. Uber claims the alleged practices have inflated operating expenses, which the company says it has passed on to riders through higher fares, contributing to a slowdown in certain U.S. markets.

According to a statement made to Bloomberg, Downtown LA Law Group strongly denied the allegations and described the case as an attempt to suppress legitimate injury claims. The firm noted that Uber did not take any of the disputed claims to trial and stated it intends to defend itself in court.

Other named defendants have not responded to the allegations as of the time of filing.

In addition to litigation, Uber is supporting legislation that would reduce insurance requirements for rideshare platforms. On July 16, a company policy director testified in favor of a California Senate bill that proposes lowering mandated uninsured and underinsured motorist coverage. A similar measure passed in New York City in June with Uber’s support.

The case is [Uber Technologies, Inc. v. Downtown LA Law Group LLP et al.,] No. 2:25-cv-06612, U.S. District Court for the Central District of California.