Over the past several months, Roosevelt Road Re, Ltd. (Roosevelt) and Tradesman Program Managers, LLC (Tradesman) have filed multiple lawsuits alleging a RICO scheme in which various law firms and medical providers purportedly directed workers to stage worksite injuries and undergo unnecessary medical procedures to inflate the value of workers’ compensation claims. Roosevelt, a reinsurer, and Tradesman, a third-party claims administrator, claim these actions led to inflated judgments, settlements, and benefits payments. These lawsuits have had a disruptive impact on providers throughout New York. The disruption took a major blow yesterday.
On June 19, 2025, the U.S. District Court for the Eastern District of New York, in Roosevelt Road Re, Ltd. and Tradesman Program Managers, LLC v. Herbert S. Subin, et al., Case No. 24-CV-05033 (HG), dismissed the first of these RICO lawsuits. The Court held that the alleged financial losses—such as claim payouts and administrative expenses—did not constitute actionable injuries under the RICO statute. As a result, the RICO claims were dismissed in their entirety.
Given the nearly similar nature of the other pending lawsuits filed by Roosevelt and Tradesman, this decision is expected to have far-reaching implications and may lead to the dismissal of those actions as well. This is a welcome development for the many medical providers who have been forced to defend against these unfounded allegations.
We will continue to monitor these proceedings and provide updates as further rulings are issued. If you have any questions about this decision or its potential impact on your business or practice, please contact the authors, the Garfunkel Wild attorney with whom you regularly work, or contact us at [email protected].
