LabCorp Defeats Texas Medicaid Fraud Claims at State High Court

Laboratory Corp. of America isn’t liable for Medicaid fraud in Texas because any potential false statements it made had no impact on millions of dollars in payments it received, a split state supreme court ruled Friday.

The state law guarding against Medicaid fraud borrows from “common-law principles that have always required a showing of materiality in order to render a falsehood or omission actionable,” Justice Kyle Hawkins wrote for the Texas Supreme Court.

Chief Justice Jimmy Blacklock and Justice Brett Busby dissented, but noted that the state would’ve had difficulty proving the existence of fraud even if given the chance. ...