Law360 (June 22, 2018, 10:09 AM EDT) — Xerox Corp. can’t try to share the blame for what Texas alleges is a $1 billion civil Medicaid fraud with orthodontists who allegedly provided unnecessary services to poor children, the Texas Supreme Court held Friday.
The high court held Xerox and its claims processor subsidiary, Xerox State Healthcare LLC — which has since been spun off into Conduent Business Services LLC — can’t designate the orthodontists as “responsible third parties” under Chapter 33 of the Texas Civil Practice and Remedies Code. That leaves the company facing potential sole liability for allegedly rubber-stamping orthodontics claims and approving payments for medically unnecessary procedures.