Allcare reportedly on the verge of bankruptcy

Allcare Dental & Dentures is preparing to file for bankruptcy, according to a story in the Buffalo News.

Paul Cambria Jr., an attorney working with Allcare, told the newspaper that the company is close to filing for bankruptcy, but he did not know exactly when it will occur.

Allcare -- the subject of numerous complaints in recent years -- shut down all of its U.S. offices without warning December 31, citing financial difficulties, and has faced a barrage of lawsuits since then.

On January 18, two former patients filed a class-action lawsuit against the company, claiming Allcare knowingly took money from them and potentially thousands of other patients for services it never intended to deliver, according to a story in the Plain Dealer.

On February 1, the Associated Press reported that three Pennsylvania firms had sued the troubled dental services provider for several million dollars. PAPA Advertising and PAPA Directory Services say Allcare owes them $3.8 million for advertising and marketing services, while Velocity Network says it is owed more than $1.1 million for Internet and communications services.

And a Fargo, ND, landlord has filed suit against Allcare in an attempt to recoup more than $21,500 in back rent, maintenance fees, and late fees, according to a news story on inforum.com.

In the meantime, attorneys general in numerous states have launched investigations into Allcare's activities to determine if other legal action against the company is warranted. They are also working to ensure that Allcare patients are given access to their dental records and connected with other dental practitioners to ensure the work most of them prepaid for is completed. A number of dental practices have stepped forward to offer assistance.

Copyright © 2011 DrBicuspid.com

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