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Sunny Hostin criticized American Transit Insurance Company after it accused her husband, orthopedic surgeon Emmanuel “Manny” Hostin, and his medical practice of insurance fraud. Hostin and his attorney disputed the allegations. In July 2025, reports said American Transit settled with Hostin and his practice and voluntarily dismissed its claims against them. The settlement terms were not reported, and the dismissal was not a court ruling on the merits.
What Sunny Hostin said about the lawsuit
In January 2025, Hostin called American Transit’s lawsuit frivolous and accused the insurer of using her celebrity status to create a media smear campaign. She said the company was trying “to avoid paying for medical and surgical procedures for people it insured who were in pain.” That was Hostin’s characterization of the insurer’s motives, not a finding by a court. Entertainment Weekly, as reported by Yahoo.
Her comments followed a civil lawsuit the insurer filed in December 2024 in the U.S. District Court for the Eastern District of New York.
What American Transit accused the doctor and his practice of
American Transit accused numerous medical providers, including Emmanuel Hostin and Hostin Orthopaedics & Sports Medicine, of participating in an alleged scheme involving fraudulent no-fault medical billing and kickbacks tied to surgeries and ambulatory surgical centers. Those claims were allegations in the insurer’s complaint; the cited reporting does not establish that they were proven. InsuranceNewsNet.
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The complaint reportedly described 5,800 patients as part of the alleged treatment protocol. American Transit sought more than $153 million in compensatory damages and more than $459 million in treble damages, according to the same report. Those were amounts sought by the insurer, not awards, and the patient figure does not mean those people were found to have done anything wrong. InsuranceNewsNet.
New York’s no-fault insurance system concerns payment of certain medical and other economic losses after motor-vehicle injuries. The insurer’s account of how providers allegedly used that system reflects its pleading, not an independent finding about the doctors, facilities or patients.
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How the parties answered each other
Hostin’s attorney denied the allegations
Daniel Thwaites, Emmanuel Hostin’s attorney, said his client “denies each and every allegation.” He called the case a “blanket, scattershot, meritless lawsuit by a near-bankrupt insurance carrier” and argued it was intended to deter doctors from collecting payment for care provided to the insurer’s customers. These statements represent the defense’s position. InsuranceNewsNet.
American Transit defended bringing the case
William Natbony, the insurer’s attorney, said American Transit “commenced its lawsuit as part of its statutory responsibility to fight no-fault fraud which is rampant in New York.” He also denied allegations of improper conduct by the company or its counsel. InsuranceNewsNet.
What happened to the lawsuit against Emmanuel Hostin
On July 9, 2025, InsuranceNewsNet reported that American Transit had settled with Emmanuel Hostin and Hostin Orthopaedics & Sports Medicine and filed a stipulation of voluntary dismissal as to them. The report said the insurer had settled with 161 of 180 initial defendants overall. InsuranceNewsNet.
A separate report published July 10 said the insurer withdrew its lawsuit against Hostin and quoted American Transit as saying it “deeply regrets any public speculation against Dr. Emmanuel Hostin, his wife, Sunny Hostin, or his children.” Yahoo.
Earlier coverage gave different defendant totals. A January 28, 2025, InsuranceNewsNet report said 141 of 186 defendants had settled at that point and that it did not know whether Hostin was among them. The July figures refer to a later report and a different stated initial total, so the counts are not directly comparable. InsuranceNewsNet.
The cited reports do not disclose Hostin’s settlement terms, say whether it included an admission, or state whether any money was paid. They describe a settlement and voluntary dismissal, not a court decision establishing either guilt or innocence.
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