NYC Sues Law Firm for Alleged Multi-Million Dollar Slip-and-Fall Fraud Scheme
The city claims Asher & Associates fabricated personal injury lawsuits, seeking $41 million in damages from 15 fraudulent cases.
New York City has filed a lawsuit against the personal injury law firm Asher & Associates, accusing it of orchestrating a multi-year scheme to defraud taxpayers out of millions of dollars through bogus slip-and-fall lawsuits. The city alleges that the firm manufactured claims, leading to at least 15 fraudulent cases that sought a combined $41 million.
According to the lawsuit, Asher & Associates presented injuries as the city's fault due to alleged sidewalk and roadway defects, when in reality, the injuries stemmed from different causes. In one instance cited in the legal documents, a client claimed to have tripped over a metal plate on a sidewalk. However, medical records obtained by the city indicated the injury was sustained during a fight on Thanksgiving Day, where the individual was struck with a lead pipe.
The firm allegedly secured millions of dollars in settlements and judgments over a period of at least 10 years. The lawsuit highlights that the firm's clients' narratives often underwent significant changes from the emergency room to the courtroom, with incidents like fights or car accidents being reframed as negligence on the part of the city.
"Personal injury laws exist to protect actual victims of trauma, not to line the pockets of people looking to make a quick buck off City taxpayers," stated New York City Corporation Counsel Steven Banks. "This firm undermined our civil justice system by operating an illegal scheme to defraud taxpayers and fabricating personal injury claims against the City and others."
The city's legal action comes at a time when New York City is already facing significant costs from legal claims. In 2024, the city paid out over $1 billion in personal injury and property tort claims, according to the comptroller's office. Officials suggest that New York City pays out more in lawsuits than several other major U.S. cities combined.
Reps from Asher & Associates did not immediately respond to requests for comment.