BATON ROUGE, La. — A company whose Medicaid contract with the state is the subject of a federal grand jury investigation says it will challenge a decision by Gov. Bobby Jindal’s administration to cancel the contract.

Maryland-based CNSI was supposed to take over Medicaid claims processing next year. But once the federal investigation became public, the governor’s Commissioner of Administration Kristy Nichols announced the contract was being scrapped.

CNSI issued a statement Friday saying the cancellation was decided without any notice to the company. A CNSI spokesman, Sonny Cranch, says the company is consulting with attorneys about how to proceed with a challenge of the Jindal administration decision.

The grand jury is looking into how the contract was awarded by the Jindal administration. The governor’s health secretary, Bruce Greenstein, once worked for CNSI.