The D.C. government recently awarded a pair of $100 million contracts to two managed-care providers that are being sued by the city for allegedly defrauding it of millions.

One of those companies, Amerigroup D.C. Inc., on Wednesday walked away from its $102.9 million fiscal 2009 deal. The 38,000 Medicaid recipients who currently subscribe to Amerigroup as their managed-care organization will be transitioned to another company over the next 60 to 90 days, District officials said.