NEW YORK, Feb. 23, 2022 (GLOBE NEWSWIRE) -- Armonk, New York-based law firm Wittels McInturff Palikovic (WMP) filed a lawsuit in Kings County Supreme Court to recover tens of millions of dollars for patients victimized by CareCube’s illegal billing schemes related to the COVID pandemic.
CareCube has been systematically charging patients for bogus doctor visits they claim were needed before CareCube would administer a COVID-19 test. CareCube has also systematically charged patients for their COVID-19 tests upfront while falsely assuring customers that they will eventually receive reimbursement.
As the lawsuit details, while consumers waited in long lines for COVID-19 tests, CareCube’s revenue skyrocketed, and the company expanded across New York City. Dozens of unhappy customers complained in online forums, to legislative officials, and to reporters that they were charged for doctor visits that never happened and that CareCube broke its promise of free COVID testing. In August 2021, CBS New York reported on the many online and Better Business Bureau complaints about CareCube’s fake billing, prompting New York City Comptroller Brad Lander to contact the New York Attorney General’s office and call for an investigation of CareCube’s “deceptive and fraudulent practices.”1
WMP’s class action amplifies Lander’s alarm that CareCube is “adding in just made-up other charges” to consumers’ bills.2 On January 6, 2022, the New York Attorney General’s Office announced that it was officially investigating CareCube,3 followed by a report from New York Magazine that the company is also under Department of Justice scrutiny.4
CareCube’s sneaky practices are emblematic of the rampant medical billing fraud in America today. The National Health Care Anti-Fraud Association conservatively estimates annual health care fraud at $108 billion.5 COVID-19 scams are also widespread, leaving governments to warn the public to stay vigilant. The United States Food and Drug Administration,6 United States Department of Health and Human Services Office of Inspector General,7 and New York Department of Financial Services8 have also issued warnings to consumers. Meanwhile. CareCube has been growing under the aegis of a legitimate medical services provider.
“This suit will prove that CareCube engaged in a massive medical billing scheme throughout New York City,” says Steven L. Wittels, partner with WMP. “For example, our clients were told their COVID tests would be reimbursed by their health insurer, but CareCube billed one individual $225 for a fake doctor’s visit instead of the PCR tests she solely received. Even a quick review of consumer websites shows that CareCube fleeces consumers for fake consultations and pulls a bait-and-switch where CareCube tells patients at the last second that prices have increased or otherwise misbills consumers to increase the company’s profits. Many consumers reported that CareCube refused to provide receipts, which from CareCube’s perspective, is a simple way to hide illegal billing practices.”
The lawsuit seeks to recover money consumers paid for illusory doctors’ visits and other fraudulent billing practices in addition to stopping CareCube’s illegal practices. The Plaintiffs’ legal team, Wittels McInturff Palikovic, have requested a jury trial.
A copy of the Class Action Complaint can be obtained by contacting kevin@propheta.com.
About Wittels McInturff Palikovic
Steven L. Wittels, named a “Super Lawyer” eight years running (2013–2020) for his class-action litigation success, is a nationally recognized class action attorney who concentrates on consumer fraud, civil rights, and general public interest cases. The firm represents victims of consumer fraud, employment discrimination, labor and wage violations, predatory lending, whistleblower retaliation, mass torts, and other wrongdoing. Mr. Wittels was a lead trial counsel in the largest employment class action ever tried to verdict in New York, resulting in a $253 million jury award against Novartis. Steven D. Cohen and Ethan D. Roman are both rising stars in the class action arena, having obtained numerous victories for victims of wrongdoing in recent years.
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1 New York Clinic CareCube Accused of Adding Bogus Charges To Patients’ Bill After Receiving COVID Test, CBS New York (Aug. 31, 2021), https://newyork.cbslocal.com/2021/08/31/carecube-covid-test-charge/.
2 Id.
3 CONSUMER ALERT: Attorney General James Launches Investigation Into CareCube for Wrongfully Billing New Yorkers for COVID-19 Tests, NY Attorney General (Jan. 6, 2022), https://ag.ny.gov/press-release/2022/consumer-alert-attorney-general-james-launches-investigation-carecube-wrongfully; Katie Honan, AG Probing CareCube, COVID Testing Company Accused of Excess Billing, The City (Jan. 6, 2022, 8:08 PM), https://www.thecity.nyc/coronavirus/2022/1/6/22871301/carecube-covid-test-excess-billing-investigation.
4 Kevin T. Dugan, The Dark Side of COVID Testing, New York Magazine Intelligencer (updated Jan. 6, 2022), https://nymag.com/intelligencer/2022/01/carecube-covid-testing-scam-accusations.html.
5 The Challenge of Health Care Fraud, National Health Care Anti-Fraud Association, https://www.nhcaa.org/tools-insights/about-health-care-fraud/the-challenge-of-health-care-fraud/.
6 Beware of Fraudulent Coronavirus Tests, Vaccines and Treatments, U.S. Food & Drug Administration, https://www.fda.gov/consumers/consumer-updates/beware-fraudulent-coronavirus-tests-vaccines-and-treatments.
7 Fraud Alert: COVID-19 Scams, U.S. Department of Health and Human Services Office of Inspector General, https://oig.hhs.gov/fraud/consumer-alerts/fraud-alert-covid-19-scams/.
8 Coronavirus-related Scams, New York State Department of Financial Services https://www.dfs.ny.gov/consumers/coronavirus/scams.
Contact: Kevin Mercuri, kevin@propheta.com
