CHIROPRACTIC CLINIC MUST PAY:

October 11, 2004

A Dallas jury ruled recently that a Texas chiropractic chain, Accident and Injury Pain Center Inc., conspired to defraud Allstate Insurance Company and Encompass Insurance, an Allstate subsidiary, according to the insurers. Accident & Injury Pain Center Inc., its related entities and various chiropractors, osteopaths and medical doctors reportedly were found to have conspired to commit common law fraud by over-treatment and unnecessary referrals. The chiropractic chain was ordered to pay $2.8 million in actual damages and $3 million in punitive damages. Allstate took the chain to court almost three years ago on charges of common-law fraud; common-law conspiracy; unjust enrichment; and violating certain provisions of the Texas Occupation Code.