Uber Technologies Inc. is taking legal action against a group of lawyers and medical providers in Los Angeles, accusing them of filing false insurance claims that have cost the company millions in legal expenses. This marks Uber’s third racketeering lawsuit this year targeting alleged fraud schemes tied to rideshare insurance.
The lawsuit, filed Monday in federal court in California’s central district, alleges these defendants steered passengers toward certain medical providers who submitted inflated bills. Uber says these claims often involved minor or even nonexistent injuries from small accidents between 2019 and 2024. The ride-hailing company claims claims were exaggerated to exceed the state-mandated $1 million insurance limit, driving up payout amounts. In one instance, Uber points to a medical bill that was 10 times higher than typical charges.
Uber says the goal of this suit is to recover millions it has paid in legal costs and settlements because of the alleged scam, which it says is still going on. The company is also supporting new state laws that would lower insurance coverage minimums for rideshare companies.
One of the law firms named, Downtown LA Law Group, strongly denied the accusations in a statement. The firm called the lawsuit an attempt to block legitimate claims and pointed out that Uber never took these cases to court, implying they may have merit. The firm promised to defend itself vigorously as the case moves forward.
The other defendants have not yet responded to requests for comment.
This lawsuit follows similar efforts by Uber in New York and South Florida. The company blames these fraudulent claims for driving up insurance costs, which have forced fare increases and contributed to slower growth in its U.S. rideshare business. In California, insurance can make up nearly a third of ride fares, and in Los Angeles County, it reaches almost half.
Uber has spent millions this year on ads pushing for insurance reform and recently supported a California Senate bill that would reduce required uninsured and underinsured motorist coverage for rideshare drivers. Lyft has also backed this legislation. Uber has seen some progress on this front; New York City recently passed similar rules cutting insurance requirements, with Uber’s support.
The case is officially known as Uber v. Downtown LA Law Group et al, filed in California’s central district court under case number 2:25-cv-06612. As Uber continues to fight what it calls a costly fraud scheme, the outcomes could reshape how rideshare insurance is handled across the country.