Uber and Liberty Mutual Sued for Alleged Staged Accidents in New York
Uber and Liberty Mutual have initiated legal action against 14 individuals and eight medical providers, accusing them of orchestrating staged accidents aimed at exploiting rideshare drivers in New York. The lawsuit, filed on April 14, 2026, in the U.S. District Court for the Eastern District of New York, outlines what is alleged to be a deliberate plan to misuse No-Fault insurance coverage through intentional collisions over approximately 19 months. This legal matter remains unresolved, with all claims currently unproven.
The complaint describes the alleged operations of this scheme. According to the lawsuit, participants would request Uber rides late at night, often on quiet residential streets in Nassau County. Shortly after, a second vehicle, driven by a purported accomplice, would collide with the Uber vehicle and then leave the scene. Passengers would subsequently file injury claims using the Uber app and seek No-Fault benefits from Liberty Mutual, the insurer for Uber's subsidiary, Rasier-NY LLC.
For insurers, this case is noteworthy due to the complex network of relationships described in the lawsuit. It alleges that several defendants shared an address in Brooklyn, utilized a single bank account to pay for Uber rides, and used a shared iPhone 14 to access the Uber app. Some defendants are believed to be related, including a mother and son who were passengers in separate alleged staged incidents occurring weeks apart.
The suit claims at least eight incidents took place between August 2023 and March 2025, with plaintiffs asserting they have incurred not less than $312,979 in losses and expenses related to the alleged fraud. According to the complaint, the rideshare drivers were typically uninjured, whereas passengers reported significant physical injuries.
Additionally, the lawsuit targets eight medical providers who supposedly treated the defendants for purported injuries, submitting claims for No-Fault reimbursements to Liberty Mutual. The plaintiffs argue these providers are not entitled to any payment, as the incidents were not genuine accidents.
From an insurance coverage perspective, two policy provisions are underlined in the filing. The first is the "Expected or Intended Injury" exclusion, which precludes coverage when an intentional injury is caused by an insured. The second is the fraud provision, denying coverage to those who submit fraudulent claims. The lawsuit also notes that four defendants did not partake in Examinations Under Oath, a prerequisite under New York law for receiving No-Fault benefits.
The plaintiffs are pursuing five legal claims: common law fraud, unjust enrichment, civil conspiracy, and two requests for declaratory judgment affirming that Liberty Mutual is not obligated to provide coverage for any of the purported incidents.