Flood insurance carriers, servicers, and related defendants were immunized from liability under the Racketeer and Influenced Corrupt Organizations Act ("RICO"), a court held in Melanson v. U.S. Forensic, LLC, No. 15–cv–4016 (ADS)(GRB), 2016 WL 1729493 (E.D.N.Y. April 30, 2016). "In general, the Plaintiff alleges that the Defendants participated in a fraudulent scheme to deny his claim for insurance proceeds arising from property damage he sustained during Superstorm Sandy." Melanson v. U.S. Forensic, LLC, No. 15–cv–4016, at *1 (ADS)(GRB), 2016 WL 1729493 (E.D.N.Y. April 30, 2016).
The defendants allegedly denied or assisted in denying payment of Superstorm Sandy claims, but they were held to be immune from liability because of the National Flood Insurance Act. The court in that case held that the National Flood Insurance Act or "NFIA" restricts any liability of participants in flood insurance programs to the sanctions, if any, imposed by regulations issued under the NFIA.
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