The Construction Industry’s RICO Offensive in New York: A Threat to Ethical Advocacy
- Leitner Warywoda
- Sep 19
- 4 min read
The construction industry’s recent legal offensive in New York, which centers on federal RICO lawsuits and public defamation campaigns against personal injury attorneys and medical providers, raises significant concerns not just for those named but for anyone committed to ethical advocacy for injured individuals[1][2]. Although the intent may be to target fraud, these actions have broader consequences for legitimate practitioners and the vulnerable clients they represent.
RICO Litigation: A Sweeping Accusation
Starting in 2024, contractors and insurance interests, notably Roosevelt Road Re and Tradesman Program Managers, began filing sweeping RICO actions against dozens of personal injury law firms, physicians, and other medical professionals based in New York[1][2]. These lawsuits allege coordinated fraud involving staged workplace accidents, excessive and unnecessary medical procedures, and inflated claims. Many of the workers alleged to be involved are immigrant laborers or those in economic distress, the very populations personal injury attorneys strive to protect in accordance with state and federal law[1][2].
From a personal injury attorney’s perspective, it is vital to underscore the foundational principle that everyone deserves zealous representation and a fair evaluation of the facts. The blanket assertion of criminal racketeering against whole classes of professionals risks stigmatizing all personal injury lawyers and their injured clients—legitimate or otherwise—and may chill access to justice for truly harmed workers[3][4].
RICO Dismissals: A Judicial Check
Federal courts have pushed back on the insurance industry’s strategy. A recent decision by Judge Hector Gonzalez dismissed substantial RICO claims, finding that the theory of injury advanced by the insurance-side plaintiffs—cost increases and claims administration burdens—lacked the direct causal relationship required under RICO jurisprudence[5][1]. While the dismissal is a positive sign for attorneys and providers facing these accusations, the court acknowledged that fraud control remains important and left the door open for improved pleadings if new facts warrant.
This outcome reaffirms that aggressive defense strategies can succeed when grounded in strong facts and law. It also sends a message to the public: not every accusation by an industry or its insurers equates to guilt or civil liability[5][1].
Counter-Offensives: Defamation and Defense
Medical providers, notably Dr. Alexandre de Moura of the New York Spine Institute, have begun filing defamation lawsuits against the law firms and managing general agents responsible for these RICO campaigns[6][7]. These suits are not only about restoring professional reputations; they serve as collective pushback against the dangers of being publicly and unfairly branded as criminals without due process.
New York courts recognize that practitioners have legal recourse when misleading or malicious statements inflict reputational and business harm[8][9]. Personal injury attorneys should view these countersuits as an opportunity both to educate the public about the presumption of innocence and to reaffirm professional standards for medical care and legal representation.
Impact on the Plaintiff’s Bar and Workers
For ethical practitioners, the stakes extend beyond the courtroom. Stigmatizing all personal injury claims as fraudulent undermines the rights of injured workers—especially the most vulnerable—to pursue justice, receive necessary medical treatment, and hold negligent parties accountable[1][10]. Recent Supreme Court clarifications regarding the RICO statute have reaffirmed that harms to business or property, even if derivative of personal injuries, are not categorically excluded under the law[11][12]. This means legitimate claims for economic losses related to injury retain their footing under both federal and state legal frameworks.
Attorneys must continue to redouble efforts toward full, honest documentation, clear communication with medical partners, and unwavering advocacy for injured workers. Simultaneously, education for clients and the public regarding the due process requirements and the facts of actual cases is critical to combat the negative implications of wide-ranging, unproven accusations.
Public Advice and Strategic Guidance
Document Every Step: Attorneys and providers should maintain clear, accurate records of all interactions, diagnoses, and accident details to prevent frivolous accusations and to support countersuits for defamation if warranted[8][9].
Demand Objective Review: Encourage courts, insurers, and the legislature to view each case on individual merits, not on preconceptions about an entire industry[13][1].
Collaborative Advocacy: Attorneys must actively defend both themselves and their medical partners in the public arena, emphasizing compliance, transparency, and ethical conduct.
Educate the Public: Outreach and educational campaigns about workers’ legal rights and safe accident reporting can help restore trust in legitimate claims and the professionals who advocate for them[10][4].
Conclusion
While real fraud must be pursued, professional and public vigilance is warranted to ensure that legitimate injured parties and their attorneys are not collateral damage in the construction industry’s broader defense tactics[1][13]. The legal system exists to discern facts and administer justice—not to perpetuate stereotypes or unfounded suspicion. Objective advocacy and careful practice management remain the surest defense for personal injury attorneys amid this dynamic legal landscape
Sources
[1] Racketeering Suit Alleges NY Insurance Fraud Scheme by Lawyers …
[2] RICO Suit Filed Against Doctors and New York Personal Injury …
[3] The Impact of RICO Lawsuits on Personal Injury Claims: A New Era …
[4] Just in: Supreme Court opens the doors for RICO in personal injury …
[5] Case 1:24-cv-05033-HG Document 55 Filed 06/19/25
[6] Complaint by Dr. Alexandre de Moura | DANY – LinkedIn
[7] Memo law in support of motion to dismiss | DANY – LinkedIn
[8] False Accusations—Defamation of Character by Libel or Slander
[9] Damages Award for Mental Anguish Affirmed in Defamation Case
[10] Construction Accident Law | Personal Injury Law Center – Justia
[11] Economic Harm Recoverable Under RICO Even When Derivative of …
[12] Supreme Court Issues New RICO Decision
[13] New York City – Judicial Hellholes
