In a long-awaited decision, the Fifteenth Court of Appeals has reversed the trial court’s ruling and held that Alexandra Alvarez, Joshua LaFountain, and Christine Ellis, DDS, are not entitled to a share of the state’s final $212.3 million (per court decision) Medicaid settlement with Xerox, totaling $37.1 million. The court found that the core allegations against Xerox had already been publicly disclosed years earlier, including through the WFAA investigative reporting that launched the entire Medicaid orthodontic controversy.
Already in the public domain
That was the key. Because the information was already in the public domain, the relators’ claims were barred under the statute. The court also found that none of the relators qualified as “original sources,” noting a lack of direct, firsthand knowledge of Xerox’s internal conduct. In short, no new information, no entitlement to a payout.
Opportunistic appearance
From TDMR’s perspective, these claims have always appeared opportunistic, having been filed in 2012, well after the orthodontic controversy had erupted. The court, in its ruling, points to numerous WFAA reports from 2011, beginning in May, that the state cited as evidence of prior public disclosure — an argument with which the court agreed.
Victory for taxpayers
After years of litigation and a potential $37 million award hanging over taxpayers, the result is simple: no payment.
Such an award would have been a travesty and undeserved.
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