Xerox allowed ‘unprecedented loss of Medicaid funds,’ lawsuit alleges

May 10, 2014 2:14 AM

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AUSTIN — Attorney General Greg Abbott sued Xerox Corp. Friday over allegations that it let unscrupulous dentists put braces on thousands of poor children who didn’t meet the government’s strict criteria for the expensive work.

Also Friday, the state’s Medicaid agency said it would terminate Xerox’s five-year, $759 million claims administration contract “for cause” about three years early.

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