More trouble for Texas's latest Medicaid contractor, Conduent.
Needless to say, insurance providers AIG and partner companies are appalled that the Delaware judge in their case against Conduent granted a retrial and dismissed the jury verdict that Conduent had committed insurance fraud in its Medicaid fraud settlement with Texas OAG for $235 million in 2019.
It is auspicious for Texas since the state just rehired Conduent as the fee-for-service Medicaid administrator after firing them in 2014 and suing them for Medicaid fraud for $1.2 billion over their administration of the orthodontia program from 2004 to 2011.
Filed motion with judge
The insurers have filed a further motion with the judge for reargument of the decision.
As the insurers state in their motion:
"As this Court has noted, a jury verdict is “entitled to great deference,” to the point that this Court has “never set aside a jury verdict” “[i]n almost 20 years on this bench.” Defendants respectfully request that the Court grant reargument specifically to address crucial legal premises underlying its extraordinary decision to nullify the jury’s verdict for Defendants in this case, which 12 jurors unanimously reached in less than two hours on four independent grounds including, inter alia, that fraud was proved by clear and convincing evidence."
Texas misconduct doesn't matter
They also state that it didn't matter whether or not the jury found whether or not the Texas OAG engaged in misconduct with Conduent because "unlike Texas, Conduent owed duties of good faith and honesty to Defendants. The jury’s findings of bad faith and fraud could rest solely on Conduent violating those duties."