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GREAT NECK, N.Y.,– A class action complaint was filed in the United States District Court for the Eastern District of New York against a towing company which the complaint claims has overcharged thousands of consumers who required towing services from a towing company that is the exclusive towing company authorized by the New York City Police Department to tow vehicles on seven (7) highways with a daily vehicle volume of 1.2 million cars per day (Abbey, et.al. v. Runway Towing Corp., et.al., Case No. 19-cv-7116 (FB/SB).
According to the Complaint, instead of charging New York’s consumers and businesses $125 to have their cars towed up to 10 miles off of the seven (7) New York highways, parkway and expressways, including the BQE, Gowanus Expressway, Prospect Expressway, Belt Parkway, Cross Island Parkway, Staten Island Expressway and 3 other Staten Island highways, Runway Towing Corp was charging up to $400 for the tow that they are only permitted to charge $125 for. The complaint states that thousands of motorists were overcharged between April 1, 2017 and the present date. The amount of overcharges are estimated to be millions of dollars from April 1, 2017 to the present date. It is alleged in the complaint, that numerous insurance companies, including Progressive Insurance Company and Geico Insurance as well as the American Automobile Association have been victims of the overcharges.
It is alleged in the complaint that the New York City Police Department and the New York City Department of Consumer Affairs knew that Runway Towing Corp. was overcharging consumers and businesses, but Runway Towing Corp. was permitted to continue their scheme to overcharge.
It is alleged in the complaint that Runway Towing Corp. was given a monopoly in towing services since April 1, 2017 by the New York City Police Department, damaging consumers and businesses who transport goods in interstate commerce on New York City roadways.
The complaint alleges that Runway Towing Corp. engaged in racketeering activity and is being sued under Civil Racketeering Influenced Corrupt Organizations Act (“RICO”), which was used to prosecute organized crime figures.