Uber cleared a significant hurdle in its federal racketeering lawsuit against several California-based personal-injury law firms and medical providers. A U.S. District Judge allowed the case to move forward. The judge kept most of the company's claims under the Racketeer Influenced and Corrupt Organizations (RICO) Act intact.
Uber alleges the defendants orchestrated a kickback scheme. The scheme channeled clients to specific doctors for unnecessary medical treatments. This inflated the value of injury claims against the company.
The defendants had sought to dismiss the case. They argued their activities were protected as a form of petitioning the government.
The judge rejected this argument. The judge ruled that such immunity does not extend to alleged "sham litigation." This ruling marks a key step for Uber. It does not determine the truth of the allegations. The case will now proceed deeper into the litigation process.