Appellate Court Affirms Dismissal of State Fund RICO Case

Broad liability releases in lien settlements prevent California’s State Compensation Insurance Fund from suing Accident Help Line and providers that the carrier says overbilled for medical treatment, the U.S. 9th Circuit Court of Appeals ruled. The appeals court on Wednesday said a federal judge in 2016 correctly dismissed State Fund’s civil racketeering case against Dr. Alexander Zaks, the owner of the Central Valley clinics, and two chiropractors who worked there, David M. Holmes and Daniel A. Reyes. Lien settlements negotiated in 2010 protected Zaks, Holmes and Reyes because S...