Allstate Sues Four New York Suppliers Over Alleged No-fault Fraud

www.insurancebusinessmag.com, Tez Romero, July 01, 2026

On June 30, Allstate filed four lawsuits accusing New York medical-equipment suppliers of running an alleged No-fault billing scheme. 

The four complaints, filed the same day in the US District Court for the Eastern District of New York, each go after a different durable-medical-equipment supplier - the firms that provide braces, compression devices, and rental gear to people injured in car accidents - and each tells nearly the same story. 

The suits name four suppliers - Fontto Supply Services Inc., MK Supply & Tech Inc, Millennium Medical Equipment Inc., and IDM Supply Group Inc. - and, in each case, the person Allstate alleges owns or controls the company. In every suit, Allstate alleges the supplier and its principal worked New York's No-fault system to bill for equipment that was medically unnecessary, never delivered as billed, or supplied under a "predetermined course of treatment, irrespective of medical necessity." 

For claims teams, the money is the story. Allstate says it wants back more than $131,000 from Fontto, $224,000 from MK Supply, $215,000 from Millennium, and $395,000 from IDM - close to $965,000 it alleges it paid out on fraudulent claims. It also wants a court to declare it owes nothing on larger piles of pending claims: over $327,000, $258,000, $361,000, and $443,000 respectively. The filings do not soften the language, alleging in each case that the defendants "stole" the money through "false and/or fraudulent insurance claims." 

The playbook, as Allstate lays it out, will ring familiar to any No-fault fraud unit. The complaints allege each supplier arranged with medical clinics - unnamed in the suits and not defendants - to have doctors prescribe piles of "virtually identical" equipment regardless of need, on prescriptions kept vague enough that a carrier could not check what was really supplied. The suppliers then allegedly billed Allstate to squeeze the most out of the fee schedule. Continue article