Texas Qui Tam Under Fire: Texas Appellate Dissent Raises Major Constitutional Doubts
In a closely watched mandamus proceeding, the Texas Fifteenth Court of Appeals denied mandamus relief to a defendant pharmaceutical company in a qui tam case brought under the Texas Healthcare Program Fraud Prevention Act (the “Act”). While the majority declined to reach the merits of the defendant’s constitutional challenges to the Act—holding that mandamus relief was premature because an adequate remedy exists through post-trial appeal—the dissent authored by Chief Justice Brister delivers a sweeping critique that could have substantial implications for future qui tam litigation in Texas. Most notably, the dissent concludes that (1) the relator lacks standing under the Texas Constitution; and (2) the Act’s qui tam provisions, as applied in cases in which Texas has not intervened, violate the separation of powers requirement under the Texas Constitution.
TX AG’s Office Continues Aggressive Enforcement Against Healthcare Entities Operating in Texas
In just the last week, the Texas Attorney General’s Office (“TX AG’s Office”) filed three actions against healthcare providers and entities, continuing an increasingly robust and aggressive enforcement regime that dates back to at least the beginning of 2025.