Uber and Liberty Mutual Sue Alleged Fraud Ring Over Staged Crashes
www.Insurancebusinessmag.com, Tez Romero, April 16, 2026
Uber and Liberty Mutual are suing 14 people and eight medical providers they say ran a staged-accident fraud ring targeting rideshare drivers in New York.
The lawsuit, filed on April 14, 2026, in the US District Court for the Eastern District of New York, lays out what the plaintiffs describe as a methodical scheme spanning roughly 19 months to exploit No-Fault insurance coverage through deliberately orchestrated collisions. The case has not yet been decided, and all claims remain allegations.
The suit paints a detailed picture of how the alleged ring operated. According to the filing, members would request an Uber ride late at night, typically on residential side streets in Nassau County. Within minutes of being picked up, a second vehicle - driven by an alleged accomplice - would side-swipe the rideshare car and flee. The passengers would then file injury claims through the Uber app and seek No-Fault benefits from Liberty Mutual, which underwrites the auto policy for Uber's subsidiary, Rasier-NY LLC.
What makes this case stand out for insurers is the web of connections the plaintiffs say they uncovered. The lawsuit alleges that multiple defendants shared a single Brooklyn address, used the same bank account to pay for Uber rides, and accessed the app through a shared iPhone 14. Several are alleged to be related by blood or association - including a mother-son pair who were passengers in separate alleged staged incidents weeks apart.
The alleged scheme involved at least eight incidents between August 2023 and March 2025, according to the suit. The plaintiffs say they have paid out no less than $312,979 in combined losses and expenses tied to the alleged fraud. According to the suit, the rideshare drivers - uninvolved in the scheme - were almost always uninjured, while the passengers claimed serious bodily injuries.
The lawsuit also names eight medical providers who allegedly treated the defendants for fabricated injuries and submitted claims for No-Fault reimbursement to Liberty Mutual. The plaintiffs argue those providers have no right to payment because the underlying incidents were not legitimate accidents. Continue Article