The United States Justice Department has moved to join a long-running lawsuit in Texas accusing Planned Parenthood of defrauding Medicaid, according to a court filing submitted days after voters elected Democrat Nathan Johnson as the state’s next attorney general.
The department’s application, filed late on Friday, would give the federal government a direct role in the 2021 case initiated by outgoing Republican Attorney General Ken Paxton, who recently lost his bid for a seat in the US Senate.
Paxton and an anonymous plaintiff are seeking to compel Planned Parenthood to repay funds allegedly received from the Medicaid programmes of Texas and Louisiana after the states moved to terminate its funding. They are also seeking additional financial penalties.
The lawsuit accuses the organisation of violating the federal False Claims Act by continuing to submit claims and receive Medicaid payments after the states announced their decisions to end its funding, and failing to repay the money after the terminations took effect.
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Planned Parenthood has denied wrongdoing, arguing that it was legally entitled to bill the states while court orders had suspended the termination decisions. It has also maintained that it cannot be held liable because it was providing legal advice to its affiliates.
The organisation has warned that it would be forced to close its operations in Texas if it loses the case.
The lawsuit resumed after a lengthy pause following a ruling by the US 5th Circuit Court of Appeals in August. The court unanimously held that Planned Parenthood’s appeal of a 2023 decision denying the national organisation immunity from the lawsuit had been filed prematurely.
The ruling cleared the way for the case to proceed after nearly three years of suspension.
