Lawsuit against state over cancellation of Medicaid contract can proceed

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wwltv.com

Posted on September 10, 2013 at 10:48 PM

Updated Tuesday, Sep 10 at 11:01 PM

WWLTV.com
Email: webteam@wwltv.com | Twitter: @WWLTV

NEW ORLEANS -- A company's civil lawsuit can now move forward against the Jindal administration for cancelling its Medicaid contract with the state.

A state district judge lifted a six-month stay in the case late Tuesday.

The state cancelled the $200 million contract after a news report said a federal grand jury was investigating the deal.

The state accused CNSI employees of inappropriate contact with former Department of Health and Hospitals Secretary Bruce Greenstein during the bidding process. Greenstein used to work for CNSI.

The lawsuit demands damages and payment for work already done.

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