A RICO case filed in New York named Dr. Emmanuel Hostin, Sunny Hostin's husband, as one of the defendants. American Transit Insurance Company (ATIC) accused Hostin and 180 other defendants of committing federal insurance fraud. However, Emmanuel and Sunny Hostin's lawyers have served a formal notice to the insurance company, seeking $5 million for "defamation and intentional infliction of emotional distress."
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Emmanuel and Sunny Hostin hired the help of attorneys Mark Geragos and Daniel Thwaites. The former wrote a letter seen by Page Six, in which he threatens to countersue ATIC. They are seeking millions of dollars should the insurance company not withdraw its allegations against Emmanuel Hostin and his medical practice.
"Your unscrupulous tactics are well known in the industry, and Dr. Hostin and his family will not be intimidated," the letter written by Geragos reads. ATIC accused Hostin of billing them "in exchange for kickbacks" that were disguised as "dividends or other cash distributions."
"No fault fraud is a huge problem in New York. American Transit filed a lawsuit as part of its statutory responsibility to fight such fraud," one of ATIC's attorneys told the Daily Mail.
However, ever since ATIC filed the RICO case, Emmanuel Hostin and his attorneys have fought back against the allegations. Moreover, Thwaites called the lawsuit a way to "intimidate and harass doctors from collecting for care given to American Transit insureds and their passengers."
Fighting Back
Geragos pointed out in his letter that ATIC had "dozens of potential financial improprieties and accounting problems," according to a New York State's Department of Financial Services report. "American Transit has a 'pattern and practice of failing to adhere to reasonable claims-handling practices and failing to reasonably resolve claims and lawsuits on its insureds' behalf," Geragos wrote.
"It is clear that American Transit's longstanding insolvency is at the root of the frivolous lawsuit against Dr. Hostin and the accompanying media smear campaign."
For that reason, Geragos has threatened to countersue ATIC if they do not withdraw their allegations. According to Geragos, the Hostin family "seek redress for defamation and intentional infliction of emotional distress in the amount of $5 million."
ATIC then shared a statement with Page Six, claiming that their lawsuit was an effort to fight "no-fault fraud" in New York. "With respect to any allegations by any defendant as to improper conduct by American Transit or its counsel, such assertions are emphatically denied as without basis," ATIC told the outlet.
