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Thursday, July 17, 2025

Medicaid Whistleblowers Awarded $37M Plus Interest - Law.com

  • Whistleblowers filed a qui tam Medicaid fraud suit against Xerox in 2012 for alleged unnecessary dental services.
  • In 2014, the state of Texas filed its own suit and in 2019 reached a settlement, but refused to give the whistleblowers their statutory share.
  • The state lost on a sovereign immunity defense and failed to convince the court its settlement was exempt from a qui tam claim.

After 12 years of litigation, three whistleblowers were awarded a statutory share of a $212.3 million settlement reached between the state of Texas and a Xerox Corp. subsidiary.

In 2019, Texas Attorney General Ken Paxton announced a $236 million settlement with Xerox State Healthcare LLC. Approximately $24 million of the total was for attorney fees.

When the settlement was approved in court, whistleblowers Alexandra Alvarez, Joshua LaFountain and Dr. Christine Ellis, D.D.S., asked the court for their share.

In 2012, the whistleblowers filed a qui tam lawsuit against Xerox for violations of the Texas Medicaid Fraud Prevention Act, which provides whistleblowers a share of any recovery owed to the state.

Texas intervened in the whistleblower lawsuit, partially unsealed it and tried to settle their claims in 2013. The state filed a separate Medicaid fraud case that restated the whistleblowers allegations in May 2014.

The whistleblowers have been represented by Charles S. Siegel and Caitlyn E. Silhan of Waters Kraus Paul & Siegel in Dallas; James Moriarty of the Law Offices of James R....



Read Full Story: https://news.google.com/rss/articles/CBMimAFBVV95cUxPcGNsNkYtOHJBeGRRTTNMbUJX...