Two days after they settled with Texas, Indiana re-awarded a four-year contract for Medicaid services, food assistance and temporary financial assistance for pregnant women and families to Conduent. The company will earn $232 million.
Conduent stock also rose sharply after news of the settlement in Texas. It took a one-day nosedive in November from $19.22 to $13.62 a share after its last quarterly earnings report. The stock gained almost $2.00 in the last few days, now sitting around $15.30 a share.
Here are the company press releases on Texas and Indiana.
Indiana Family and Social Services Administration Selects Conduent to Help 1.5 Million in Need
$232 million, four-year agreement renews a 10-year relationship
FLORHAM PARK, N.J., Feb. 21, 2019 — Conduent Incorporated (NYSE: CNDT), a digital interactions company, was selected by the Indiana Family and Social Services Administration (FSSA) for a $232 million contract over four years, renewing a relationship that began in 2009.
Conduent provides application processing support for applicants and benefit recipients of state government programs, including Medicaid, Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families and the Healthy Indiana Plan.
Serving approximately 1.5 million Indiana benefit recipients, Conduent supports the state’s client services. Incorporating automation technologies, the company provides assistance with application processing, screening, scheduling, initial case processing and data collection from applicants.
“When we began the transformation of our eligibility and support services with the help of Conduent, we became one of the most efficient social services agencies in the country,” said Adrienne Shields, Director, Indiana FSSA Division of Family Resources. “The work Conduent does is a critical component in providing our constituents with a positive experience.”
The company works with the state to process more than 100,000 applications and responds to approximately 200,000 phone inquiries per month. Conduent also assists individuals through the hearings and appeals process, and supports the state with benefit recovery efforts.
“We have more than 1,000 employees dedicated to our relationship with Indiana FSSA, and they are passionate about the work they do in support of citizens in need,” said Marcus Collier, Group Chief Executive, Conduent Government. “We’ve built a trusted partnership with the state over the last 10 years by sharing a commitment to serve Indiana.”
Conduent Reaches Agreement with State of Texas to Settle Claims Regarding Medicaid Contracts with Predecessor Companies
FLORHAM PARK, N.J., Feb. 19, 2019 – Conduent Incorporated (NYSE: CNDT) today announced it has entered into a settlement agreement with the state of Texas regarding claims related to two previous contracts supporting the state’s Medicaid program.
All of these allegations relate to the 2004-2014 time period, when the company was owned by predecessor companies. In the settlement agreement, Conduent denied any improper actions occurred during the performance of the two contracts.
“We are pleased to put this legacy issue behind us. This settlement provides clarity on the financial impact and we have sufficient liquidity to address it,” said Ashok Vemuri, Chief Executive Officer, Conduent. “Texas remains an important client for us and we are focused on continuing to bring value to our client and its citizens.”
Pursuant to the terms of the agreement, the company will pay the state $235,942,000 over a period of three years in full settlement of the claims asserted against the defendants.
For additional information, please see previous disclosures regarding this matter in the company’s prior SEC filings.