United Behavioral Health Inc. and others must continue defend against a whistleblower’s claim that they unlawfully failed to return to Medicaid funds for behavioral health and substance abuse services to which they weren’t entitled.

False Claims Act whistleblower La Frontera Center Inc. adequately alleged that the defendants failed to disclose material facts which, if known, would have obligated them to report overpayments to the federal government, Judge Kea W. Riggs of the US District Court for the District of New Mexico said in a Wednesday opinion.

La Frontera’s complaint sufficiently argued that the defendants cut funding to subcontractors, but kept ...

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