BakerHostetler has succeeded in dismissing the majority of claims brought against it in a lawsuit accusing the firm of aiding in an insurance fraud scheme. However, it is still facing allegations under the Racketeer Influenced and Corrupt Organizations Act, commonly known as RICO. These claims were deemed sufficient to proceed in court, despite the firm’s motion to dismiss them.
The case, initiated by the liquidating trustee of Alliance Health in 2022, alleged that BakerHostetler was involved in legal malpractice and other misconduct while assisting a pharmaceutical company involved in a scheme causing over $100 million in damages. While most of these claims, brought by the trustee on behalf of the trust and the largest creditors of Alliance Health, were found to lack standing or were time-barred, the RICO claims are continuing to pose a challenge for the firm.
For more detailed information on this ongoing case, including the motion to dismiss filed last year, you can read the full article here.