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Thursday, September 7, 2023

Lawsuit Proceeds Against Amazon For Scheme to Obstruct a Workers’ Compensation Claim

An injured Amazon fulfillment center worker brought an action against Service LLC [AMAZON] for acts of its Third-Party Administration (TPA), Sedgwick CMA-Philadelphia [SEDGWICK], among other allegations, in interfering with the authorized workers’ compensation physician. The claim arose from a December 2019 knee accident the worker sustained at the AMAZON warehouse. 

The complaint was filed by a pro se injured worker against AMAZON in state court, alleging that SEDGWICK colluded with the examining workers’ compensation physician to “fraudulently conceal or alter” the worker’s medical records and “knowingly participated in a deceitful scheme” to obstruct the claim of the injured worker for workers’ compensation benefits.

AMAZON attempted removal of the claim from state to Federal Court based upon the parties’ lack of diversity of citizenship and joined the NJ-based physical. Amazon also filed a Motion to Dismiss the claims.

The Federal Court, relying upon the Doctrine of Fraudulent Joinder, remanded the case back to NJ state court and dismissed AMAZON’s motion to dismiss the case.

Murray v. Services LLC, et al., USDC-NJ, Case No. No. 1:22-CV-07340-KMW-MJS Decided Aug. 31, 2023.

Related article: Warehouse Workers' Injuries Are Increasing as Employers Use Artificial Intelligence


Jon L. Gelman of Wayne, NJ, is the author of NJ Workers’ Compensation Law (Thomson-Reuters) and co-author of the national treatise Modern Workers’ Compensation Law (Thomson-Reuters). For over five decades, the Law Offices of Jon L Gelman 1.973.696.7900 have represented injured workers and their families who have suffered occupational accidents and illnesses.

Blog: Workers ' Compensation

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LinkedIn Group: Injured Workers Law & Advocacy Group

Author: "Workers' Compensation Law" West-Thomson-Reuters