Federal court dismisses Planned Parenthood's appeal in Medicaid fraud case

On Wednesday, the full U.S. Court of Appeals for the Fifth Circuit dismissed an appeal by Planned Parenthood in a whistleblower lawsuit regarding the abortion giant's alleged Medicaid fraud and attorney immunity. The case has been returned to the district court.

Key Takeaways:

The full Fifth Circuit Court of Appeals dismissed Planned Parenthood's appeal, which claimed that its attorneys have immunity from being sued after they advised Planned Parenthood to continue billing state Medicaid in Texas during an ongoing lawsuit.
The Fifth Circuit dismissed the lawsuit, stating that it does not have jurisdiction; it returned the case to the federal district court.
The trial involving Texas and Planned Parenthood continues now in the district court, with Planned Parenthood potentially liable for $1.8 billion in damages, civil penalties, interest, and legal fees.

The Backstory:

The case began with "Alex Doe," the pseudonym of the whistleblower who conducted an undercover investigation to learn if Planned Parenthood was selling fetal tissue to researchers and tissue procurement companies.

In response to that investigation, Louisiana and Texas ended Planned Parenthood's eligibility for state Medicaid; however, the three Planned Parenthood affiliates in those states continued to bill Medicaid, and claimed its lawyers told the affiliates to continue billing Medicaid as the lawsuit to restore Medicaid funding proceeded.

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In 2023, a federal judge ruled that Planned Parenthood must stand trial in a $1.8 billion lawsuit brought by Doe, and joined by Texas. That suit alleges that Planned Parenthood took Medicaid funds from the state, and then failed to repay those funds after its status as a Medicaid provider was terminated.

Neither Texas nor Planned Parenthood wanted a trial, but U.S. District Judge Matthew Kacsmaryk scheduled a trial for April 2024.

Planned Parenthood appealed, arguing for attorney immunity regarding its decision to continue billing Medicaid while the courts decided whether or not Texas and Louisiana could legally terminate the abortion giant's Medicaid eligibility.

In February 2025, a three-judge panel from the Fifth Circuit Court of Appeals reversed Kacsmaryk's decision and shielded Planned Parenthood's attorneys from being sued by third parties over its legal advice.

The Details:

On Wednesday, the full (en banc) Fifth Circuit dismissed Planned Parenthood's appeal, vacating its panel's February 2025 decision. It determined that it lacks jurisdiction to consider Planned Parenthood's appeal, and it has returned it to the district court.

The court's ruling states (emphases added):

Relator Alex Doe alleges that, after three regional affiliates of Defendant–Appellant Planned Parenthood Federation of America, Inc.,were terminated from Medicaid, the Federation masterminded an in-court and out-of-court scheme to maximize the affiliates’ ability to continue submitting Medicaid claims, in violation of the False Claims Act, 31 U.S.C. §§ 3729–32, and its Texas and Louisiana state-law analogues, Tex. Hum. Res. Code § 36.002; La. Rev. Stat. § 46.438.

On cross-motions for summary judgment, the district court concluded that the Federation was not entitled to attorney immunity and denied summary judgment to the Federation on Relator’s implied-false-certification and conspiracy claims. United States ex rel. Doe v. Planned Parenthood Fed’n of Am., No. 2:21-cv-22, 2023 WL 11898264, at *20– 25 (N.D. Tex. Oct. 23, 2023). The Federation appealed under the collateral-order doctrine, asking us to hold that attorney immunity shields the Federation from liability.

Bloomberg Law posted on Facebook, "Planned Parenthood’s appeal of an interim ruling cannot be considered by the Fifth Circuit, the full court held Wednesday, returning the case to a federal district court that previously said the nonprofit’s attorneys aren’t immune from a False Claims Act lawsuit."

The court ruled, "A panel concluded that this court has appellate jurisdiction under the collateral-order doctrine. ... On the merits, the panel reversed and remanded, reasoning that the Federation 'is entitled to immunity for the acts of its attorneys.' ... We now hold that we lack jurisdiction to consider this interlocutory appeal, and we dismiss the appeal."

Bloomberg Law reported:

The en banc opinion rejected Planned Parenthood’s argument that the court could consider the attorney immunity issue under the collateral-order doctrine, a legal principal [sic] that allows immediate appeals of interim rulings in certain instances.

That doctrine doesn’t apply in this case because 'resolving the immunity question would not conclusively determine a separable legal issue in a way that meaningfully advances the litigation,' the en banc court wrote.

What's Happening Now:

The trial will continue in the federal district court to determine if Planned Parenthood must return Medicaid funding to Texas.

In all, Planned Parenthood may be liable for treble damages, civil penalties, interest, and legal fees, totaling $1.8 billion.

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