Lawsuit looming over canceled Medicaid contract

BATON ROUGE, La. (AP) - Gov. Bobby Jindal's administration is facing a likely lawsuit from the Maryland-based company whose nearly $200 million Medicaid contract with the state was terminated.

Client Network Services Inc., known as CNSI, issued a statement Friday from lawyer Kathryn Harris saying the state won't negotiate in good faith about how to avoid legal action. Harris says the company will pursue "all legal remedies" to seek compensation for what she calls the improper termination of the contract.

The Jindal administration scrapped the contract after details emerged about a federal investigation into the contract award.

Since then, the administration said the governor's former health secretary, Bruce Greenstein, improperly exchanged repeated phone calls and text messages with CNSI during the bid process, creating an "unfair advantage" for the firm.

Greenstein once worked for CNSI.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)