Texas Settles with [Conduit] for $235 Million Out of “Desire to Buy Peace and Avoid Further Litigation”

EDITED: Xerox has asked that I add the following to this page:

The State of Texas sued several companies, including Conduent and its former parent, Xerox, for alleged losses between 2004 and 2014 related to the day-to-day management of a services contract for Medicaid-covered dental care.  The original 2003 contract was between subsidiaries of ACS, Inc. (now Conduent) and the State of Texas and was signed before Xerox acquired ACS in 2010.  Xerox was not responsible for performing services under the contracts and was not involved in the management of the contract or the services provided to the State. The parties have now agreed to a settlement whereby Conduent will pay the State over $235.9M.  Xerox will not make any payment as part of the settlement.

For additional information, visit Conduent.com

The following appears on WFAA.com

This morning Attorney General Ken Paxton announced that the State of Texas had settled its $2 billion Medicaid fraud lawsuit against Xerox/Conduent, its former Medicaid administrator from 2004 to 2012, for $235 million.  The settlement over Xerox/Conduent’s inadequate orthodontic prior authorization process was touted as a record recovery for Medicaid fraud in Texas.  The release can be read below.

No admission of wrongdoing or liability

A copy of the settlement agreement linked to by the release (and available below) shows that the state did not get any admission of wrongdoing or even liability by Xerox.

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