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A Texas appeals court has overturned a $48 million whistleblower award tied to a $236 million Medicaid fraud settlement with Xerox, ruling that the three individuals who brought the claim were not entitled to any share because their information was not original. The court found that Texas relied primarily on prior media reports—rather than the whistleblowers’ disclosures—to pursue the case, which involved allegations that Xerox failed to properly verify eligibility for orthodontic services under Medicaid. Under whistleblower laws, individuals can only receive a portion of recovered funds if they provide new, non-public information, and the judges concluded that standard was not met. As a result, while the state retains the full settlement amount, the whistleblowers will receive nothing.
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