In an article exploring the cases to watch in Texas courts in the new year, Lauren Fincher, a Partner in Locke Lord’s Austin office, focused on the State’s $1 billion Medicaid fraud case in which Texas seeks to recover the sum from Xerox Corp. and a spinoff business processing company for processing allegedly fraudulent claims.
Fincher noted both the size of the case and the stakes for both sides are "massive" as Texas has reportedly invested more than 39,000 hours of legal work in the case, and the state must repay the Centers for Medicare & Medicaid Services $133 million. Fincher also pointed out that Xerox faces not just the possibility of a 10-figure judgment but also a potential decade long exclusion from participation in Medicaid.
She continued: "If the court finds that proportionate responsibility applies to the governmental fraud claim, it could have potentially far-reaching implications for all government enforcement matters, not just civil Medicaid fraud claims."
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