Uber just kicked the hornet’s nest of accident law. I have obtained new federal filings and draft ballot language that show Uber is taking on high-volume personal injury practices in court and at the ballot box. The company is suing what it calls settlement mills, and it is backing a California initiative that could rewrite how crash victims, lawyers, and doctors get paid.
What Uber Filed, And What It Says Is Broken
Uber has filed civil racketeering suits in federal courts in California, New York, and Florida. The complaints accuse some personal injury firms and linked medical providers of coordinated fraud. Uber says these networks stage or exaggerate crashes, inflate medical bills, and share kickbacks. It claims the costs land on insurers, drivers, and riders.
RICO is a federal law used against organized fraud. It can be used in civil cases to seek money damages. If a court finds a pattern of fraud, the penalties can be severe. These cases will turn on proof of coordination, not just bad billing or sloppy lawyering.
Defense lawyers will argue that injured people often need fast care and a lawyer to get it. They will say liens and referrals are common and legal when disclosed. The line between fraud and hard bargaining is where these cases will be fought.
The Ballot Measure That Could Reshape Payouts
At the same time, Uber is pushing a California ballot measure for November 2026. The title is the Protecting Automobile Accident Victims from Attorney Self-Dealing Act. The text I reviewed would do three big things.
- Cap recoverable medical costs at standard Medicare rates.
- Ban or tightly restrict payments between lawyers and medical providers.
- Require that at least 75 percent of a settlement goes to the injured person.
- Tighten disclosures on liens and referral relationships.
Backers say this will cut fraud and put more money in victims’ pockets. Critics warn the cap ties recovery to government rates, which are often below market. That could make some doctors refuse lien care after a crash. Lawyers also warn the 75 percent rule could make complex cases impossible to fund, since experts and costs add up.
California has no broad cap on auto injury lawyer fees today. This measure would effectively set a floor for what victims must receive, which could force fee and cost cuts in many cases.
The Legal and Civic Stakes
For accident victims, the risks and benefits are real. A 75 percent floor sounds generous. In a simple case, it might be. In a serious injury case, costs can be huge. Expert reports, imaging, depositions, and trial prep are expensive. If the law limits what can be recovered for medical charges to Medicare rates, some providers may not treat on credit. That can delay care and weaken a claim.
For personal injury firms, RICO suits bring discovery, subpoenas, and brand damage. Firms with strong compliance will welcome a clean-up. High-volume shops tied to clinics and runners face the most risk. The ballot measure could also push firms to screen cases harder and refuse clients who need lien-based care.
For medical providers, liability is not just financial. The lawsuits claim kickbacks and billing fraud. That invites attention from regulators and licensing boards. If the cap passes, many providers will rethink lien work, which could push more victims into using health insurance, or paying cash up front.
For insurers, this is a win on paper. Lower recoverable medical charges mean lower claim payouts. But if access to care drops, claims may take longer and spark more litigation over reasonableness and necessity of treatment. That can blunt savings.
For the courts, civil RICO is a heavy tool. Expect fights over standing, the scope of the enterprise, and the line between aggressive advocacy and fraud. The ballot measure, if enacted, will face constitutional and preemption challenges, including whether Medicare benchmarks can be hardwired into private tort recoveries.
Do not sign a medical lien or release without reading it. Ask who gets paid, in what order, and from what funds.
What To Do If You Are Hurt In A Crash
You still have rights. Your case is unique. These steps help protect it.
- Get medical care right away, then keep every record and bill.
- Report the crash to your insurer, but avoid a recorded statement until you have advice.
- Consult a qualified accident lawyer early. Ask about fees, costs, and liens in writing.
- Avoid steering by tow yards or clinics. Choose your own doctor and lawyer.
- Track time limits. Many claims have short deadlines.
In your first meeting with any lawyer, ask for a written breakdown of how a settlement would be split, including liens, costs, and fees. ✅
Frequently Asked Questions
Q: What is a settlement mill?
A: It is a high-volume firm that focuses on fast settlements. Critics say mills rely on heavy advertising, quick referrals to clinics, and low client contact. Practices vary widely, and not all high-volume firms are mills.
Q: Does the 75 percent rule cap attorney fees?
A: It does not set a fee cap by name. It would require that the victim receive at least 75 percent of the settlement. That pushes fees and costs to fit inside the remaining share.
Q: Will Medicare-rate caps cut my medical recovery?
A: The measure would limit what you can recover for medical charges to Medicare benchmarks. If your billed charges are higher, you may not recover the difference from the at-fault party.
Q: Can I still choose my own lawyer and doctor?
A: Yes. The initiative targets payments between lawyers and providers and sets payout rules. It does not remove your right to choose counsel or medical care.
Q: What happens next with Uber’s lawsuits?
A: The cases will move into motions and discovery. Courts will decide if the claims survive, then the parties exchange evidence. Trials or settlements could take many months.
The bottom line is clear. Uber has opened a legal and policy front that could change accident law in California and beyond. The courts will test the fraud claims. Voters may decide how payouts are split. If you are hurt, do not wait. Get care, get counsel, and get every number in writing before you sign. Your recovery depends on it.
