Molina Information Systems LLC can proceed with its lawsuit alleging Unisys Corp. failed to disclose issues with its Idaho Medicaid management information systems prior to the unit’s $135 million sale, the U.S. District Court for the District of Delaware has ruled. The court said Molina’s fraud and breach of contract claims can move forward, but dismissed the plaintiff’s negligent misrepresentation allegations.
U.S. District Judge Richard G. Andrews of the District of Delaware said in Molina Information Systems v. Unisys that the plaintiff plausibly pleaded corporate scienter to survive Unisys’ motion to dismiss.
