FedEx sues NYC law firm, alleges staged car accidents

Federal Express has filed a lawsuit against New York lawyers it accuses of staging traffic accidents and arranging for unnecessary medical treatment to increase the value of injury lawsuits.

FedEx sued Ikhilov Law Group and several medical care providers last week in New York federal court, as rising auto-insurance costs have been a hot topic in the state. Even Gov. Kathy Hochul has blamed staged accidents for driving up costs for everyone, and federal prosecutors last week charged a man with scamming insurers out of tens of millions of dollars.

New York drivers are required to carry no-fault insurance, which lets them and others obtain benefits of up to $50,000 for injuries in accidents. Hochul said insurers reported more than 38,000 incidents of suspected auto-insurance fraud in 2023, which helped tack an extra $300 onto everyone’s yearly...