State Fund Adds New Defendants to Drobot RICO Case

California's State Compensation Insurance Fund survived another motion by Michael D. Drobot and Michael R. Drobot seeking to dismiss civil racketeering charges, and also amended its complaint to name three new defendants it says were used by the father and son to coordinate their alleged fraud scheme. At the same time, a judge for the U.S. District Court in Central California allowed Michael R. Drobot to amend his counterclaim and charge the carrier with breaching the terms of three settlement agreements that obligated State Fund to "informally attempt to resolve disputes and seek re...