The owner of the Endoscopy Center of Southern Nevada and the Gastroenterology Center of Southern Nevada has sued five insurance companies for not defending her from multiple lawsuits during a 2007 hepatitis C outbreak, according to a Courthouse News Service report.
Tonya Rushing filed the lawsuit in Clark County Court against Nevada Mutual Insurance, St. Paul Fire & Marine Insurance, US Fidelity and Guaranty Co., Travelers Indemnity and Evanston Insurance.
Ms. Rushing claims the insurers issued liability policies to the two surgery centers, and alleges that the policies obligated the insurers to defend various employees of the centers. She claims that each insurance company denied coverage due to a "lack of basis for establishing coverage," according to the report.
Ms. Rushing plead not guilty to federal charges of overbilling insurance companies. They were charged with conspiracy and 25 counts of healthcare fraud, according to the report.
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