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Judge lifts stay in CNSI lawsuit against state

Tuesday - 9/10/2013, 4:40pm  ET

BATON ROUGE, La. (AP) -- A state district judge has lifted a six-month stay that stalled a Maryland company's civil lawsuit against Gov. Bobby Jindal's administration for cancelling its $200 million Medicaid contract with the state.

Judge Tim Kelley dismissed his previous stay order Tuesday on procedural grounds.

Kelley said attorneys for the state didn't follow the proper process for giving him evidence that he used to issue the six-month delay.

The decision means that Client Network Services Inc., or CNSI, can now proceed with its lawsuit against the Jindal administration.

The attorney general's office says a delay is needed to protect the integrity of a state grand jury investigation into the contract award.

Assistant Attorney General David Caldwell says he'll refile the request for a stay, following the process the judge outlined as proper.

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