Liberty Mutual Insurance Company has filed a comprehensive lawsuit against several pharmacies and individuals in New York, alleging a widespread insurance fraud scheme. The lawsuit names LLC, Custom Rx Pharmacy LLC, Ready Rx LLC, Top Choice Pharmacy Corp., Leader Rx Pharmacy LLC, and individuals Petr Yakubovich Fakhlayev, Georgiy Davidov, David Davidov, Albert Pinkhasov, and Igor Aronov as defendants.
According to the lawsuit filed by Liberty Mutual and its associated companies—LM General Insurance Company, American States Insurance Company, among others—the defendants orchestrated a fraudulent operation involving multiple pharmacies that violated New York's No-Fault insurance laws. The suit claims that these pharmacies submitted false claims for pain-relief products like diclofenac sodium gel and lidocaine patches under the guise of legitimate medical necessity following automobile accidents. Liberty Mutual alleges that these prescriptions were part of a predetermined treatment protocol that ignored individual medical needs.
The complaint details how the defendants allegedly manipulated New York’s No-Fault insurance system to their advantage. Pharmacies can directly bill insurers for services rendered to accident victims without patient involvement in billing processes. This setup allowed the accused pharmacies to submit inflated or unnecessary claims without scrutiny from claimants who might otherwise question their validity or cost. Liberty Mutual asserts that this scheme was further facilitated by unlawful referral agreements with certain healthcare providers who prescribed medications as part of an arrangement rather than based on actual patient needs.
The plaintiffs aredemanding actual damages exceeding $1.67 million—funds they argue were wrongfully paid out due to fraudulent claims—and a declaration absolving them from any future payments related to these No-Fault claims. Additionally, Liberty Mutual accuses the defendants of violating federal RICO statutes due to their alleged pattern of racketeering activity involving mail fraud.
This legal action is supported by references to similar cases previously filed against some of the same defendants. These cases allege comparable fraudulent activities involving medically unnecessary prescriptions and illegal referral arrangements designed to exploit insurance systems for financial gain.
The plaintiffs are represented by attorneys of King, Tilden, McEttrick & Brink P.C. The case was filed in the Eastern District of New York under Case ID: 1:25-cv-01373.