Xerox facing another lawsuit from Texas in Medicaid claims fallout

** FILE ** In this Oct. 23, 2008 file photo, Xerox Corporation headquarters in Norwalk, Conn. (AP Photo/Douglas Healey, file)

AUSTIN (KXAN) — Xerox is facing a second lawsuit from the Texas Health and Human Services Commission stemming from allegations the company paid out hundreds of millions of dollars for unnecessary dental work.

The agency filed the lawsuit Tuesday against the ex-Medicaid contractor saying the company is refusing to turn over patient records. Without the documents, HHSC says the state is out of compliance with federal regulations and at risk of incurring ‘massive federal fines.’

The Texas Health and Human Services Commission terminated the company’s Medicaid claims administration contract in May saying Xerox staff approved thousands of requests for dental braces that were not medically necessary. The agency also filed a suit to recover millions paid out for the work.

“Once again, the reckless and irresponsible actions of this company put Texas tax dollars at risk,” said Kyle Janek, executive commissioner of the Texas Health and Human Services. “It really makes you wonder what they’re trying to hide.”

Xerox has said it’s disappointed with the state’s decision and plans to “defend itself vigorously.” provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Users who violate these terms, including use of vulgar language or racial slurs, will be banned. If you see an inappropriate comment, please flag it for our moderators to review.

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