Brenn Distrib., Inc. v. The Attorney Gen. of Texas, No. D-1-GN-13-001434 (345th Dist. Ct., Travis County, Tex., filed April 13, 2013): On April 13, 2013, Brenn Distribution, Inc. filed a petition against the Texas Attorney General seeking to set aside a Civil Investigative Demand (CID) issued to it under the Texas Medicaid Fraud Prevention Act (TMFPA). The TMFPA gives the Attorney General broad power to issue CIDs to investigate potential Medicaid fraud outside the civil discovery process. (Tex. Hum. Res. Code § 36.053-054.) The TMFPA states that a CID may be modified or set aside for “good cause” (Tex. Hum. Res. Code § 36.054(f)), but courts have provided little or no guidance regarding the scope or limitations of CIDs. Brenn claims that the CID is overbroad because it seeks documents from 2007 to the present, but any actions that Brenn took which could potentially constitute TMFPA violations related solely to the business Brenn sold in 2007. Brenn further asserts that the CID seeks to impermissibly discover whether Brenn has sufficient assets to satisfy a possible judgment from a lawsuit that has yet to be filed.
28 May '13