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Major company settles with State of Louisiana

 

CNSI, a major provider of business solutions in the healthcare sector, has agreed to settle an ongoing lawsuit brought against the State of Louisiana in relation to the wrongful termination of a contract the company was awarded in 2011. CNSI won the contract to replace Louisiana’s existing Medicaid Management Information System following six months of bidding for opportunity.

When CNSI was chosen to overhaul the Medicaid system, it was an industry leader in implementing such systems, having already successfully overhauled such systems in four other states. However, two years into the contract, Governor Bobby Jindal's administration pulled the plug on the operation, claiming that the procurement process for the contract had been unduly influenced. CNSI responded in kind with a suit against Louisiana alleging wrongful termination of the contract. Investigations into the procurement process were undertaken in the following years but failed to lend any credence to the Jindal administration’s claims of improper influence. 

 

The settlement reached in the recent agreement details that Louisiana will change the wording of the termination from "for cause" to "for convenience,” authorizing CNSI to submit claims for work performed by the date of the contract cancellation, as well expenses incurred in discontinuing the contract. Both parties have mutually agreed to cease their claims against each other, with the exception of CNSI’s claim of “termination for convenience.”

Business contracts can sour in any number of ways. The guidance of a qualified, experienced business litigation attorney can help anyone facing wrongful contract termination or a host of other business litigation issues navigate the complex landscape of being rightfully compensated for the offense.

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