The United States Court of Appeals for the Fifth Circuit ruled, in a class action suit against Mobil Oil last week, that a fronted insurance company was valid under Texas workers' compensation laws, and that the company's use of a "cash-flow retro plan", though of questionable propriety, was nevertheless legal in the manner it was established.
In Patterson v. Mobil Oil Corp. (07/08/03 - No. 02-40698),
plaintiffs, a number of injured workers, alleged that Mobil violated the Racketeers Influenced Corruption Organization Act (RICO) by conspiring with
various insurers and claims adjusters over...
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