Allstate Files $1.1 Million Insurance Fraud Case in NY (ALL)

Published: 2012-01-06 12:57:01
Author: FNNonline

 Allstate Insurance (NYSE:ALL) is in search of recovering more than $1.1 million from sixteen New York-area defendants in its ninth insurance fraud lawsuit of 2011. The complaint, filed in Federal District Court, on December 30, as a Declaratory Judgment/Recovery action, alleges that a chiropractor, along with one layperson and two lay entities illegally owned and controlled three professional medical corporations allegedly owned on paper by a medical doctor and used them to submit fraudulent billing to Allstate.

In addition, four other individuals and four other companies were also named as being part of the overall scheme to submit fraudulent bills to Allstate. Since 2007, Allstate has filed thirty-six fraud lawsuits in New York, seeking nearly $199 million in damages.

Allstate (NYSE:ALL) has potential upside of 17.1% based on a current price of $27.57 and an average consensus analyst price target of $32.28.

Allstate is currently above its 50-day moving average (MA) of $26.49 and should find resistance at its 200-day MA of $28.10.

In the last five trading sessions, the 50-day MA has climbed 0.25% while the 200-day MA has remained constant.

The Allstate Corporation, through its subsidiaries, provides property-liability insurance, as well as other types of insurance in the United States and Canada. The Company primarily sells private passenger automobile and homeowners insurance through independent and specialized brokers. Allstate also sells life insurance, annuity, and group pension products through agents.