State Farm has taken legal action against a New York medical practice, accusing it of running a large-scale fraud scheme across more than 90 clinics. The insurance company filed the lawsuit on February 25, 2026, in the US District Court for the Eastern District of New York. The defendants include Atlantic Medical & Diagnostic, P.C. and its owners, doctors Jonathan Landow and Viviane Etienne.
According to State Farm, Atlantic operated numerous clinics mainly in Brooklyn, Queens, the Bronx, and Manhattan. These clinics, which the insurer calls "No Fault Clinic Mills," allegedly conducted unnecessary medical exams and treatments for over 5,500 people insured by State Farm. The services billed include exams, injections, nerve blocks, prescription drugs, medical equipment, orthotics, and diagnostic tests—all allegedly not needed.
State Farm claims that this medical practice followed a one-size-fits-all approach. Nearly every patient reportedly received the same treatment plan, ignoring their actual symptoms or injuries. The exams were said to be superficial, carried out just to produce paperwork for billing unnecessary treatments and referrals.
Under New York’s no-fault insurance rules, auto insurers cover up to $50,000 per person for essential medical care after a car accident. State Farm accuses Atlantic of exploiting this system by steering patients through fake exams and charging for services that weren’t actually required or properly documented.
The lawsuit also highlights alleged illegal kickback schemes. State Farm says Atlantic paid the clinics for patient access but disguised these payouts as rent and administrative fees. The amounts charged for these supposed leases allegedly varied depending on how many patients were seen, rather than reflecting fair market value.
Other billing issues include charging for multiple ultrasound guidance units per visit when only one is allowed, billing expensive rates for cheap medications, and charging full physician fees for treatments done by nurse practitioners and physician assistants who weren’t adequately supervised.
When State Farm denied or reduced claims, Atlantic reportedly fought back aggressively by filing over 5,200 arbitrations and more than 2,100 lawsuits in state courts to collect disputed payments.
State Farm’s suit includes claims of fraud, racketeering, and unjust enrichment. The insurer is also asking the court to declare that Atlantic isn’t entitled to collect no-fault benefits for the questioned examinations, injections, and related services.
Similar lawsuits have been brought by other major insurers like Allstate, GEICO, USAA, Nationwide, and Travelers. So far, no court decision has been made on the case. The parties are moving forward with a jury trial.
This case highlights ongoing concerns about fraud in New York’s no-fault insurance system and the challenges insurers face in preventing abuse while providing necessary care to accident victims.