Allstate sues clinics

Allstate filed the federal complaint as Allstate Insurance Company v. Khit Chiropractic and Rehabilitation, PLLC, et al., Case No. 1:26‑cv‑00543 in the U.S. District Court for the Western District of Texas, Austin Division on March 5, 2026. newsbreak.com The filing seeks up to $25.9 million and alleges the network submitted 1,253 claims to Allstate between 2018 and 2024, billing more than $22 million for the contested services. claimspages.com Named defendants include Khit Chiropractic and owners Luis and Alejandra Khit along with more than 20 clinics, physicians, radiologists and staff operating in Austin, Kyle, Mission, Rio Grande City, Harlingen, Edinburg, McAllen, Weslaco and Brownsville, and the complaint spans roughly 155 pages. finance.yahoo.com Allstate details alleged operational practices such as templated one‑page exam reports, explicit instructions to avoid words like “degenerative,” and testimony that staff were told not to record patient pain scores, citing deposition evidence. finance.yahoo.com The complaint alleges many visits and procedures were conducted or documented by nurse practitioners or unlicensed assistants but billed at professional provider rates, and it asserts some sites processed as many as 100 patients per day under standardized care plans. insurancebusinessmag.com Plaintiffs frame the case as a federal racketeering action under RICO, alleging use of letters of protection, improper facility fees and unbundled charges to convert soft‑tissue auto‑injury claims into higher‑dollar major medical billings. claimspages.com