Texas Supreme Court Rules Conduent is Government Contractor, Not Governmental Unit

The Texas Supreme Court ruled that Conduent is a government contractor, not a governmental unit, after the company was hired by Texas to review Medicaid orthodontic prior authorization requests. The Court vacated a 2024 opinion and sent the lawsuit brought by M&M Orthodontics and Drs. Scott and Diana Malone back to the trial court for further proceedings. This ruling followed a previous lawsuit where Texas obtained a $236 million settlement from Conduent.

The ruling clarifies the legal standing of Conduent in its role as a state contractor. The State of Texas had previously sued Conduent, alleging that the company rubber-stamped requests in violation of Medicaid policy, which reportedly cost the government millions of dollars.