Lance Cawthon Wins Major Victory at Texas Supreme Court

Lance Cawthon, in collaboration with Austin’s Snell Law, is pleased to announce a significant win for their client, Dr. Richard Malouf, at the Texas Supreme Court.

 In a 34-page ruling issued June 21, the Court reversed a judgment over $16 million against Dr. Malouf, who had been wrongly accused of defrauding Medicaid, and rendered judgment in his favor. The case was originally filed by two whistleblower plaintiffs and ultimately prosecuted by the Texas Attorney General’s office on behalf of the State of Texas.

Mr. Cawthon and Snell Law joined the case just months before trial, navigating condensed deadlines amidst pandemic disruptions. Despite their efforts, the initial trial court ruled in favor of the state and whistleblower plaintiffs, resulting in a summary judgment exceeding $16 million.

Dr. Malouf’s legal team relentlessly pursued an appeal, securing a partial victory at the Eighth Court of Appeals in El Paso. Because a substantial judgment over $13 million remained, the legal team petitioned for review by the Texas Supreme Court.

In its ruling, the Court concluded that Dr. Malouf did not violate the Texas Health Care Program Fraud Prevention Act by submitting claims with his ID number even though other dentists performed the services.

 The Court ruled that the act was ambiguous and interpreted it in Dr. Malouf's favor, stating that a reimbursement claim must fail to indicate both the license type and ID number of the actual treating provider for a violation to occur. Since the claims indicated the type of license (dentist), Dr. Malouf's actions didn't violate the Act, the Court found.

 Mr. Cawthon, who argued the case before the Supreme Court, said the outcome “spares our client a grave injustice.”

 “We are incredibly grateful for the Texas Supreme Court’s recognition of this case and their thoughtful resolution of the issues,” he said. “We’re also incredibly happy for our client, and are grateful for his trust and unwavering belief throughout this challenging process.”

 In addition to Mr. Cawthon, Dr. Malouf was represented by Jason Snell of Snell Law