A dentist sued Texas and Xerox over Medicaid fraud claims. The Texas Supreme Court ruled that when the state files its own claims for money in a lawsuit, it gives up sovereign immunity protection for that case. However, the court limited this rule: it applies to compensatory damages but not to statutory penalties. This matters to subcontractors because it clarifies when you can actually collect money from government entities that sue you first.
If a government agency sues you for money, you can countersue them—they've waived sovereign immunity by filing first