LabCorp Headed Back to Court to Face Texas Medicaid Fraud Claims

Laboratory Corp. of America must again face claims alleging it defrauded Texas Medicaid, a Houston-based state appeals court ruled Tuesday, reinstating a lawsuit that a lower court tossed.

The state doesn’t need to prove discrepancies in the lab’s reimbursement requests had a relevant impact in the approval of payments, the Texas Court of Appeals, First District said.

“The state produced evidence to establish a genuine issue of material fact on materiality,” Justice Peter Kelly said in a unanimous opinion joined by Chief Justice Terry Adams and Justice Veronica Rivas-Molloy.

Since 2005, LabCorp has submitted five million claims to Texas Medicaid ...