Appeals Court Upholds $23 Million Judgment Against Missouri DSS in Dispute

Jefferson City: So, here’s the scoop. A Missouri appeals court just backed a $23 million ruling against the Department of Social Services, or DSS, over a contract issue with EngagePoint, a tech company. This all started back in 2016 when EngagePoint claimed it was owed big bucks for work on a software system for public benefits, including Medicaid.

The state had hired EngagePoint in 2013, but things went south, and they ended up countersuing, saying EngagePoint didn’t deliver. Fast forward to 2022, and a judge ordered the state to pay over $4 million, plus a jury awarded another $18.9 million for extra claims. The state wasn’t happy and appealed, arguing the jury’s decision was off-base.

But the appeals court disagreed, saying EngagePoint did a lot of extra work at the state’s request. They pointed out that the state had directed EngagePoint to fix issues with a software called Cúram, which was a mess. Eventually, the state brought in IBM to finish the job after cutting ties with EngagePoint in 2015.

The state claimed EngagePoint was just trying to get money for work it didn’t do and that it caused major problems in the Medicaid system. They even said EngagePoint’s failures nearly brought the whole operation to a halt.

Despite all this, the court sided with EngagePoint, saying the award was fair under Missouri law. It’s a pretty big deal, and it looks like the state’s going to have to cough up that cash. Meanwhile, EngagePoint’s claims have been taken over by HHS Technology, which is also suing the state for violating transparency laws. It’s a tangled web, for sure!