According to the lawsuit, patients at AIM would allegedly be required to sign a waiver stating that all payment for treatment was to be sent to the patient's attorney. "AIM's first avenue of recovery was to look to the proceeds of settlements or judgments paid for by insurance companies such as Allstate," the suit states.

AIM would give a referral to a local attorney involved in the alleged scam. The law firm would then pay AIM a kickback or referral fee, Allstate alleges.

The company's Special Investigative Unit investigated the suspect claims. One of the men allegedly involved in the scheme, Richard Charette, was involved with Accident Trial Lawyers and management and marketing firms also listed as defendants.

Mr. Charette is currently awaiting trial after being indicted in April on federal charges he disclosed personal health information to attorneys.

The suit also names doctors Sebastian Balle and Arthur Rossi, who with Peter Balle would allegedly prepare "boilerplate" patient reports that included the exact same language. Patients "were diagnosed and treated with the intent of creating or exaggerating insurance claims, rather than legitimately assessing their true condition," Allstate said.