When Attorney General Ken Paxton announced last week he had settled a giant Medicaid fraud case on behalf of Texas, he trumpeted how much money the state would collect from Xerox. “AG Paxton Recovers Record $236 Million for Texas in Medicaid Fraud Settlement,” he announced in a press release.
Yet it might not turn out to be as impressive a haul as it first seemed – in fact, the state could end up losing money.
Steep legal fees and money Texas taxpayers had to repay to the federal government lopped a huge chunk of the award off the top. Now, a handful of whistleblowers have filed a legal claim saying they are due a finder’s fee for helping Texas regulators make the case.