Judge Delays Lawsuit In Medicaid Contract Dispute

BATON ROUGE, La. (AP) — A state judge has delayed a Maryland company's lawsuit that challenges the Jindal administration's abrupt cancellation of its nearly $200 million contract to process Medicaid claims.

Judge Tim Kelley granted a six-month stay Tuesday of the civil proceedings over the objection from lawyer Lewis Unglesby, who represents Client Network Services Inc.

Kelley said he based his latest ruling on law enforcement investigative files that state prosecutors provided him for a private review.

Gov. Bobby Jindal's administration canceled CNSI's multiyear contract in late March after news broke of a federal investigation into the contract.

State Department of Health and Hospitals Secretary Bruce Greenstein, who had been a CNSI executive, resigned a week later.