The lawsuit against Sunny Hostin’s husband, orthopedic surgeon Dr. Emmanuel “Manny” Hostin, was voluntarily dismissed with prejudice on July 8, 2025, when American Transit Insurance Company withdrew its fraud claims, issued a public apology to the Hostin family, and agreed to pay the invoices Dr. Hostin had submitted to the insurer.1Becker’s Spine Review. Insurer Drops Dr. Emmanuel Hostin From $450M Lawsuit2Page Six. Insurer Withdraws Lawsuit and Apologizes to The View Co-Host Sunny Hostin and Her Doc Husband Dismissal with prejudice means the claims cannot be refiled.
What Dr. Hostin Was Accused Of
Dr. Hostin was one of more than 180 defendants named in American Transit Insurance Company v. All City Family Healthcare Center Inc., et al., filed December 17, 2024, in the U.S. District Court for the Eastern District of New York. The 698-page complaint alleged a conspiracy to submit fraudulent claims under New York’s no-fault auto insurance system and sought over $150 million in compensatory damages, which could be tripled to more than $450 million under the federal RICO statute.3PR Newswire. American Transit Insurance Company Files Over $450 Million Insurance Fraud Case Against Over 180 Defendants
The specific allegations against Dr. Hostin were that he knowingly performed medically unnecessary procedures, including arthroscopic surgeries, on car-accident patients whose injuries did not warrant them, and that he billed American Transit through ambulatory surgery centers in exchange for kickbacks disguised as dividends tied to his small ownership stake in the Empire State Ambulatory Surgery Center.4People. Sunny Hostin Speaks Out Against Insurance Company Suing Her Husband5InsuranceNewsNet. The View Host Sunny Hostin’s Husband Accused in NYC Insurance Fraud His attorney, Daniel Thwaites, called the complaint a “blanket, scattershot, meritless lawsuit.”6Entertainment Weekly. Insurance Company Withdraws Lawsuit Against The View’s Sunny Hostin’s Husband Manny
How the Hostins Responded
Sunny Hostin, the ABC View co-host and former federal prosecutor, spoke publicly in January 2025. In a statement to People, she said American Transit was trying to avoid paying legitimate medical bills for people it had insured, accused the company of running a “disgusting media smear campaign” that exploited her celebrity, and claimed the insurer was “on the verge of bankruptcy.”4People. Sunny Hostin Speaks Out Against Insurance Company Suing Her Husband
The couple retained attorney Mark Geragos and announced plans for a $5 million countersuit alleging defamation and emotional distress. That countersuit was never filed as a separate action; Geragos sent a formal demand letter, and the matter was resolved before any independent case became necessary.7Yahoo Entertainment. The View Co-Host Sunny Hostin Behind the scenes, attorney Kurt Lundgren handled settlement negotiations for Dr. Hostin.8Core Group USA. Sunny Hostin’s Husband Seeking to Settle Medical Fraud Lawsuit, Says Attorney
The Dismissal and Apology
When American Transit filed the July 8, 2025 stipulation of voluntary dismissal, it publicly explained that Dr. Hostin had been named “primarily because he holds a small share of a surgical center that was involved in the dispute.” The company agreed to pay Dr. Hostin’s outstanding invoices and expressed “deep regret for any public speculation against Dr. Emmanuel Hostin, his wife, Sunny Hostin, or his children, which may have resulted from the lawsuit.”2Page Six. Insurer Withdraws Lawsuit and Apologizes to The View Co-Host Sunny Hostin and Her Doc Husband
Geragos said American Transit had tried to “weaponize Sunny Hostin’s celebrity” to pressure a quick settlement, and that the family had refused. “Dr. Hostin, Sunny Hostin, and their family have been fully vindicated,” he said.6Entertainment Weekly. Insurance Company Withdraws Lawsuit Against The View’s Sunny Hostin’s Husband Manny
What Happened to the Rest of the Case
The underlying RICO lawsuit continued after Dr. Hostin was released. By February 2025, American Transit had already settled with 141 of the 186 named defendants.8Core Group USA. Sunny Hostin’s Husband Seeking to Settle Medical Fraud Lawsuit, Says Attorney Court records show that as of mid-2026, about 84 defendants have been terminated and roughly 106 remain, with the next conference scheduled for August 2026.9PACER Monitor. American Transit Insurance Company v. All City Family Healthcare Center Inc. et al
American Transit, the largest insurer of taxi and ride-share drivers in New York, is in severe financial distress. The company reported a negative surplus of roughly $795 million as of December 2025, and the New York Department of Financial Services has identified it as being “at significant risk of failure,” though it has not been placed into receivership.10Wall Street Journal. New York Taxis Insurance American Transit Insurance Company Fraud No-Fault11S&P Global Market Intelligence. American Transit Alleges Fraudulent Accident Claim Conspiracy in $150M Lawsuit The company has attributed its insolvency to the same widespread no-fault fraud that its mass litigation was intended to address.