State Farm is suing a New York medical practice for more than $30 million, alleging a sweeping no-fault fraud scheme spanning over 90 clinics.
The insurers - State Farm Mutual Automobile Insurance Company and State Farm Fire and Casualty Company - filed the action on February 25, 2026, in the US District Court for the Eastern District of New York. The case names Atlantic Medical & Diagnostic, P.C., along with its owners, physicians Jonathan Landow and Viviane Etienne, as defendants.
According to the filing, Atlantic operated at more than 90 multi-disciplinary clinics primarily across Brooklyn, Queens, Bronx, and Manhattan - locations the insurers describe as "No Fault Clinic Mills." Since June 2022, Atlantic allegedly examined more than 5,500 State Farm insureds and billed for services the insurers say were medically unnecessary, including examinations, trigger point injections, nerve blocks, topical prescription drugs, durable medical equipment and orthotics, and electrodiagnostic testing.
The filing paints a picture of a medical practice running on autopilot. State Farm alleges that virtually every patient received the same predetermined treatment plan - regardless of their actual symptoms, conditions, or diagnoses. Examinations, the insurers claim, were not conducted to genuinely assess injuries but to generate paperwork justifying a wave of unnecessary treatments and referrals.
Under New York's no-fault system, auto insurers are required to cover up to $50,000 per insured for necessary medical expenses following a motor vehicle accident. State Farm alleges Atlantic exploited this framework by funneling patients through sham examinations and billing for services that were neither needed nor properly documented.
At the center of the case are allegations of illegal kickback arrangements. State Farm claims Atlantic paid the clinic mills for access to patients, disguising those payments as "rent" for office space and fees for administrative services. Those purported leases, the filing alleges, had no connection to fair market value and instead fluctuated based on patient volume.
The alleged billing irregularities go further. State Farm claims Atlantic routinely billed for multiple units of ultrasonic guidance when industry guidelines allow only one per visit, charged hundreds of dollars for medications that cost roughly a dollar to acquire, and billed at full physician rates for services performed by nurse practitioners and physician assistants who were not adequately supervised under New York law.
When claims were denied or reduced, Atlantic allegedly responded with a litigation blitz - filing more than 5,200 arbitrations and over 2,100 state court lawsuits to collect on disputed bills.
State Farm is pursuing claims under federal racketeering statutes, fraud, and unjust enrichment, and is seeking a court declaration that Atlantic is not entitled to collect no-fault benefits on its unpaid claims for examinations, injections, and related services. The defendants have also faced similar actions brought by Allstate, GEICO, USAA, Nationwide, and Travelers.
No determination has been made on the merits. The case is pending, with the plaintiffs demanding a jury trial.
Case: State Farm Mutual Automobile Insurance Company et al. v. Atlantic Medical & Diagnostic, P.C. et al., Case No. 1:26-cv-01084 (E.D.N.Y.)
