A San Antonio doctor has settled a federal lawsuit brought by two State Farm insurance companies that alleged he performed unnecessary and expensive spine surgeries and procedures on patients injured in car accidents to inflate the value of their insurance claims.
Although the final terms of the settlement were not disclosed, Dr. Sanjay Misra agreed to pay $314,000 to the State Farm Mutual Insurance Co. of Texas. and State Farm County Mutual Insurance Co. according to the terms of the preliminary agreement.
The details of this agreement were revealed during the September 26 hearing after a successful mediation with US Magistrate Judge Henry Bemporad.
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A transcript of the hearing outlining the mediated settlement was filed in court on Oct. 2, but was later sealed by U.S. District Judge Jason Pulliam. The request to seal it was filed by Misra’s lawyers, who said the sealing was “necessary to avoid any public conflict over possible minor differences between the transcript of the mediation conference and the final agreement.”
Misra’s attorneys also said sealing the court transcript was necessary to “preserve the confidentiality required” by a federal court order “covering the parties’ settlement negotiations and the terms discussed at the mediation conference, which are still being finalized.”
Ricardo Cedillo, one of the attorneys representing Misra and his practice, said his clients are glad the case is over, especially since the court found State Farm’s claims of “treating fictitious patients … completely without merit.”
“Throughout this case, Dr. Misra has maintained his innocence and there has never been any finding of liability, wrongdoing, misconduct, or misconduct against Dr. Misra or his practice,” Cedillo said in an email Monday. “He is very pleased to have dismissed this lawsuit.”
A representative of the state economy did not respond to a request for comment. Reciting the terms of the agreement on September 26. At the hearing, Bemporad said, “State Farm does not intend to issue any press release regarding the claims.”
A State Farm lawyer told the hearing that the companies had agreed they would not say anything other than “there was an arrangement without liability”. She also agreed that she would not say anything against Misra’s statement.
During the hearing, Bemporad gave the parties 45 days for a final settlement. There were apparently no obstacles, as both sides filed a joint motion to dismiss the case on Friday.
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A court transcript shows Misra tentatively agreed to make a $23,000 payment in 2026, 2027 and 2028. at the beginning, followed by 2026 and 2027. made 11 monthly payments of $7,000 and then 13 monthly payments of $7,000 ending at the beginning of the 29th.
The parties agreed to waive all claims against each other, except for some outstanding payments that Misra may have owed.
The state-owned companies in their lawsuit alleged that Misra submitted hundreds of fraudulent invoices and supporting documents. He denied the allegations.
Submitting fraudulent bills to the U.S. Postal Service amounts to “racketeering activity” designed to defraud insurers, the company said in its complaint. Fraudulent billing and supporting documents “were at least a substantial factor in causing them to settle personal injury and uninsured/underinsured motorist claims that they otherwise would not have paid,” the insurers said.
According to a court filing, they paid more than $6.5 million in lawsuits settled or litigated against 335 patients treated by Misra for neck and/or back pain. The companies requested a refund.
Misra countersued, alleging that SOEs falsely labeled him a criminal, damaging his professional reputation and causing more than $500,000 in damages to his pain management clinic. Racketeering is related to the Racketeer Influenced and Corrupt Organizations Act, or RICO, which is a federal law often associated with the prosecution of mob bosses.
Pulliam dismissed Misra’s counterclaims early last year.
During the case, the state-owned companies subpoenaed the law firms of personal injury attorneys and television attorneys Jim Adler and Jeff Davis for all communications between them and Misra regarding more than 185 of his patients.
Both law firms filed motions to quash the subpoenas, which were granted in part and denied in part.
State Farm Mutual was the second-largest auto insurer in Texas in 2023, according to the Texas Department of Insurance. taking 16.3% of the market. The largest was Progressive County Mutual Insurance Co., with 18.3 percent. State Farm County Mutual ranked 22nd with 0.89 percent.
This article was originally published San Antonio doctor agrees to pay State Farms to end litigation.