After being faced with the threat of a federal indictment in a Medicaid fraud investigation seven and a half years ago, the University of Medicine and Dentistry of New Jersey terminated the African-American woman who was its general counsel, as well as three other employees—all women.
Now, a state appeals court says the university had a ‘legitimate, non-discriminatory reason” to discharge Vivian Sanks King and upheld dismissal of her race, gender and age bias suit.
As the university’s chief legal officer, Sanks King’s duties included oversight for compliance at a time when UMDNJ allegedly engaged in systematic double-billing for medical services, the court said.
According to the court, in 2001 Sanks King learned that University Hospital had likely engaged in illegal Medicaid reimbursement practices but didn’t notify the state Medicaid program until 2004.
A federal criminal probe began in 2005. It spurred the then-U.S. attorney for New Jersey—now-Gov. Chris Christie—to demand the firing of Sanks King, another staff attorney and two compliance officers.
Christie told the university that his office would defer prosecution of the institution only if the four were discharged. Three of the four who lost their jobs were Black.
Though she was not criminally charged, not questioned by the U.S. Attorney’s office, nor had to testify before a grand jury, Sanks King sued under the state civil rights law, alleging employment discrimination, denial of due process, wrongful denial of a severance package and damage to her reputation. She alleged that UMDNJ didn’t force the termination of three White men also involved in the billing scandal: the former president, a chief financial officer and the medical school dean.
