Texas Appeals Court Orders Dismissal of Lawsuit Against ProPublica, Texas Tribune
https://www.propublica.org/article/mrg-medical-lawsuit-dismissed-against-propublica-texas-tribune
Texas Appeals Court Orders Dismissal of Lawsuit Against ProPublica, Texas Tribune
An appeals court ruled that MRG Medical filed its lawsuit against the news organizations past the statute of limitations.
by Perla Trevizo
Co-published with ProPublica and The Texas Tribune
May 23, 10:30 a.m. CDT
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A Texas state appeals court on Wednesday ordered the dismissal of a 2022 disparagement lawsuit against ProPublica and The Texas Tribune filed by MRG Medical LLC., a health care services company. The court ruled that the defamation claims were barred by the one-year statute of limitation.
Writing on behalf of a three-judge panel of the 3rd Court of Appeals, Judge Rosa Lopez Theofanis sent the case back to the lower court to consider the news organizations request for court costs, attorneys fees and sanctions.
MRG Medical filed the suit in September 2022 challenging a 2020 Texas Tribune and ProPublica article about efforts by the company and its founder, Kyle Hayungs, to secure contracts from local governments during the COVID-19 pandemic. The investigation, based on dozens of interviews and a review of hundreds of emails, audio recordings and social media posts, found local elected officials hadnt disclosed the extent of their relationships with Hayungs as they tried to persuade their governments to work with him or companies he hoped to partner with.
Hayungs, who founded MRG Medical in 2017, claimed the news organizations and the three reporters who worked on the story included statements or information in the article that disparaged the company and interfered with current and prospective contracts. Hayungs based his lawsuit on what he purported to be implications in the story that the company was illegally avoiding competitive public procurement by keeping contracts under $50,000, that he was selling unreliable non-FDA-authorized COVID-19 tests and that he was bribing elected officials.
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