As reported, the lawsuit broadly alleges that the State’s Request for Proposal (RFP) / bidding process which resulted in the eventual awarding of the management of the State’s $11 billion Medicaid homecare assistance program contract to PPL was “a sham bid process.” The lawsuit was filed in federal court in the Eastern District of New York against NYS DOH, NYS Medicaid Director Amir Bassiri, and Public Partnerships LLC (PPL) in June.

As reported, following the conclusion of the RFP process in 2024, and beginning in January 2025, DOH began transitioning the homecare assistance program, known as the Consumer Directed Personal Assistance Program (CDPAP), which was previously managed by around 600 individual fiscal intermediaries (FIs), to one selected, statewide FI, Public Partnership, LLC (PPL).

On Thursday, on issuing a statement in relation to its move to dismiss the lawsuit, a spokesperson for PPL referred to what they described as the “baseless accusations” therein. “The Department of Justice gets the facts backwards in its baseless complaint against PPL and the State of New York, siding with the very interests responsible for the widespread fraud and abuse that New York and PPL have worked to eliminate,” a PPL statement read.

It continued, “This lawsuit is driven more by politics than by the facts or the law. PPL has a long history of rooting out fraud, waste, and abuse in state Medicaid programs, including saving New York taxpayers more than $1 billion. We have consistently been willing to work with federal and state officials to advance that shared goal. Rather than engage on the facts, the Department of Justice has filed a complaint built on false allegations and unsupported conclusions. It fails to state a viable legal claim against PPL and should be dismissed.”

PPL representatives allege that contrary to DOJ’s narrative, PPL never made false representations to the State and has nothing to hide. They allege that the truth is that PPL submitted a winning bid to manage New York’s CDPAP based on what PPL described as “its proven track record of success in 18 other states” and based on the fact that it “accomplished the largest Medicaid transition in history while implementing important reforms focused on program integrity, and has already delivered more than $1 billion in cost savings to New York as a result.”

Representatives for PPL, which is based in Alpharetta, GA, went on to say that PPL’s 3-page, pre-motion filing [of the lawsuit dismissal], submitted on July 15, summarizes what they said were several independent reasons why the court should dismiss the DOJ’s lawsuit.

They allege the case was just “the latest example demonstrating the Trump administration’s pattern of misusing the courts for political purposes.” As examples of such alleged misuse, they said the DOJ requested that the “court impose drastic injunctive relief against PPL that is foreclosed as a matter of law.”

They said the DOJ also asked the court to permanently freeze PPL’s assets under 18 U.S.C. § 1345, a federal statute reserved for stopping ongoing criminal conduct. They said this was despite DOJ stating that the case against PPL was not criminal and the DOJ disclaiming any intention to bring a criminal proceeding against PPL.

They went on to say that DOJ’s request to freeze PPL’s assets was also subject to dismissal on what they said were the additional grounds that DOJ failed to plead sufficient factual allegations to support what PPL described as such a “drastic request.”

They added that the DOJ “purposefully” mischaracterized the Request for Proposal (RFP) issued by New York State for the management of CDPAP, following which PPL was the chosen bidder selected, in order to support what PPL said were the DOJ’s “fraud claims.” They said that the DOJ failed to present facts sufficient to support such claims. They added that all fraud claims should be dismissed for that reason alone.

PPL representatives went on to say that numerous lawsuits have challenged the CDPAP procurement and award to PPL, and that in all cases, the procurement process and the award were upheld as being fair and lawful. They said the DOJ cannot relitigate those issues through their own lawsuit.

As reported, there were administrative problems encountered during the transition. In terms of PPL’s current management of the program, according to PPL representatives, overall program participant satisfaction in CDPAP has grown since PPL became the sole financial intermediary. They said that a 2026 statewide survey of CDPAP consumers and workers found that overall satisfaction is 4.31 out of 5, up from 4.04 out of 5 in May 2025.

PPL representatives went on to say that satisfaction with PPL’s timekeeping systems increased as well to 4.39 out of 5, up from 4.27 out of 5 in May 2025. They said respondents consistently praised PPL’s Time4Care mobile app, ease of clocking in and out, and improved visibility into hours and authorizations compared to prior fiscal intermediaries.

They added that PPL has “successfully identified and weeded out wasteful and fraudulent practices that went undetected previously, including PAs submitting overlapping timesheets, billing excessive hours, or billing time when their consumer was hospitalized or even deceased.”