Bait and Switch.  False Advertising.  Fraud.  Fraudulent inducement. Gross Negligence.  Failure to due “due diligence”.  Failure to honor “fiduciary responsibilities”.
It’s not legal just because it’s the “government” doing it.

Consumers in Nevada have had enough.  They signed up for coverage, paid for coverage, thought they HAD coverage and were denied.
The first volley in a long, ugly, anti-socialized medicine campaign has begun.
A class action suit alleging Obamacare fraud cloaked as “negligence” by purchasers has been filed in Nevada.
The lawsuit filed in U.S. District Court of Nevada on Tuesday alleges gross negligence and failure to do due diligence against the state of Nevada, the Silver State Health Insurance Exchange (which runs Nevada Health Link), and the company that won the contract to build the exchange, Xerox.
https://lasvegas.cbslocal.com/2014/04/02/first-class-action-lawsuit-filed-against-nevada-obamacare-exchange/
This class action suit is different from the ones that are attempting to challenge the constitutionality and SCOTUS ruling on the issue.
The Nevada class action suit, filed by the law firm of Callister and Associates on behalf of  Larry Basich, who made the international news when he claimed he had paid for premiums for several months but then was left with a $400,000 unpaid bill after a life-necessary triple-bypass heart surgery allegedly due to the management failure and “negligence” of the insurers and contractors involved.

The suit filed by Callister can be considered a “Fire for Range” – that is, the first sounding shot fired to find out where the enemy target is, so that the firing pattern can be adjusted to ensure that the enemy target can be bracketed with fire (“Fire for Effect”) and obliterated.
Many people are aware that the “political fix is in” and challenges to the “ACA – Affordability Care Act, a/k/a “Obamacare” ” are predestined for failure.  By sniping at the exchange contractor, Xerox, Callister is in effect, doing an end run around challenging Obamacare directly, but with the same end result.  Callister clearly understands that arguing about Obamacare in and of itself is a distraction and a worthless expenditure of energy.
A successful suit will, logically, in the litigious environment of modern day America, open the floodgates to more legal challenges.
Financially destroying the Exchange operators, contractors and navigators will in the end essentially obliterate Obamacare.
The Fabian progressives will, of course, spin this as yet another example of why private market suppliers (in this case, “Xerox”) can not be “trusted” to be involved in any aspect of health care delivery, and if the US accepted a “single payer” system provided by the federal government, all of these “problems” would be magically solved.  (Just ask Veterans who rely upon, and have their healthcare managed by the federal VA system, or native Americans who have their healthcare managed by the federal Bureau of Indian Affairs how well federal oversight and total control of health care delivery works out in the real world….)

The findings of the court in response to this filing will tell prospective future litigants the areas of legal weakness (“Firing for Range”) so they can adjust accordingly for future challenges.  Callister is careful to elucidate that his filing does not challenge the legality of Obamacare:
“This has nothing to do with the ACA. This is 100 percent about Xerox, who won the bid from the state of Nevada to create this exchange. And they’ve failed. They absolutely failed,” Callister told the Review-Journal.”
This has the potential to upset the Obamacare cart in a big way – which is one of the reasons the Progressives are so adamant about declaring Obamacare as a “settled” issue politically and legally.
The final end state desired of the Fabians is “single-payer” coverage (and they make no secret of this), and some speculate that failure of Obamacare is deliberate so that once the private coverage market has been totally smashed, “single-payer” will be offered up as the only “sensible” fix to the whole mess.
It is also no secret that the Obamacare legislation, written in prison by convicted felon Robert Creamer, vetted by both the pharmacy and health insurance industries, is not designed to provide better access to quality medical care, it is designed to enhance the profits of these industries by restricting and controlling access – and increase costs.
Karl Denninger, who posts at his blog “Market Ticker”, has written several very informative and well-researched commentary pieces about the market-rigging of the current health insurance industry racket, as well as the market-rigging deliberately embedded in the Obamacare regulations.
A truly free market would lower health costs across the board, increase accessibility, and make it possible for the average person to afford most routine procedures by price-shopping and paying the provider directly. A responsible person would need to only carry low-cost “catastrophic” coverage – or have an employer provided supplemental catastrophic coverage plan as an employee benefit/incentive as was the case for most of both the United States and Canada before the current iteration of expensive for-profit health insurance providers and “benefits managers” was put into place.  Visitors to the US, such as European and Canadian “Snowbirds”, can purchase reliable catastrophic insurance coverage for much less than US citizens can purchase for themselves domestically – which begs the question, “Why” ?