Touchstone, Whistleblower Have Settlement in Medicaid Fraud Suit

The former chief operating officer for Touchstone Behavioral Health and the company have reached a settlement in a False Claims Act suit alleging the improper retention of Medicaid funds, a federal district court said.

Craig Thomas and Touchstone reached an agreement that is subject to final authorization and approval by the government, the parties told the US District for the District of Arizona Tuesday. Judge James A. Teilborg ordered the clerk to dismiss the entire case July 23 unless a party withdraws the notice of settlement. The parties didn’t immediately respond to a request for comment.

• Thomas, who sued in ...