Scott Bloch vows to appeal dismissal of complaint for $2 billion against major government contractors like KBR, Blackwater and DynCorp, G4S/Ronco and the global insurance carriers AIG, CNA, ACE and Zurich, on behalf of thousands of former employees, for unlawful, fraudulent and bad-faith mistreatment of injured employees and their families  

WASHINGTON, DC (December 21, 2012) – Today the Federal District Court in Washington, DC dismissed all of the claims of 31 persons who have been subjected to a scheme to harm and defraud by Insurance giants CNA, AIG, Zurich and ACE, as well as by the multi-billion dollar Contractor community of Blackwater, KBR, ITT, RONCO, L-3 and many others.

Scott Bloch addressed the dismissal: “Some of the injured plaintiffs have fought for their rights to recover for their injuries for more than 8 years, having lost limbs and contracted PTSD, brain injury and many other injuries.  None of what this class action is claiming on their behalf and on behalf of thousands of others who have been grievously wronged is recoverable in the workers compensation scheme known as the Defense Base Act or DBA.  That is why they had to seek redress in Court.  These companies must pay for what they have put these brave individuals and their families through, and we will not stop fighting on their behalf and will appeal this.”

The Court reasoned that the DBA is the exclusive remedy and one cannot access justice in the Courthouse, but instead must seek relief through the Department of Labor.  The problem is, all of the claims are not for matters that the DBA provides relief for or can be redressed by the Department of Labor, and many of the individuals already have obtained whatever relief they could in their workers compensation case.  They are not asking the Court for that kind of relief, but for the insurance companies and the contractors to stop committing fraud in stopping payment on checks that are agreed to be owed, or authorizing medical care for brain injuries or needed surgeries they agree they have to pay for, but simply refuse to pay bills or to pre-pay for procedures as they have to.  Some people have to go for months, even years, with no medical care, and there is nothing the Department of Labor will do or even in many cases can do to stop this illegal and fraudulent behavior.

Since 2003, top government contractors like Blackwater, KBR, DynCorp, G4S, CSA/AECOM and ITT have been perpetrating a fraud on their employees and on the American public.  The silent warriors who work for these companies, many of them decorated former military service members, have been injured, mistreated and abandoned by the contracting companies and their insurance carriers who have been paid hundreds of millions of dollars in premiums.

“It is a grave injustice,” Bloch said, “to those who rode alongside American soldiers, including Iraqi and Afghani Nationals, to be cast aside without the benefits of the law.  We are supposedly trying to bring them the rule of law.  We are supposedly trying to encourage them in democractic institutions.  We are the ones asking them to believe in justice and individual rights.  This is a travesty to all Americans and those around the world who look to America for an example of humanitarian aid and proper treatment of workers.”

This is a lawsuit for damages in the amount of $2 billion to remedy the injuries and destruction caused to the lives, finances and mental and physical well being of thousands of American families and others whose loved ones were injured while serving America under contracts with the United States.  It seeks an additional unspecified amount to punish the companies who made massive profits while causing this harm to people unlawfully and maliciously and working a fraud on the American public who paid them.

“This abusive and illegal scheme by the defendants has been allowed to go on for too long.  We are talking about loss of life, suicide, loss of homes, marriages, families split up, “ Bloch said, “and the culprits are the large government contractors who should have treated their employees better, and the mega-insurance companies who were paid a hefty sum to make sure the employees were taken care of with uninterrupted benefits in the event of injuries in these war zones.”

The Plaintiffs have 30 days in which to file a notice of appeal.

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