In accordance to a Bloomberg report, Indianapolis-based Anthem and Bloomfield, Conn.-based Cigna blamed each other for sabotage in recent lawsuits filed after a U.S. District Court blocked their proposed $54 billion merger Feb. 8. Here are the top 5 takeaways from the lawsuits of Anthem and Cigna.
- In a lawsuit filedFeb. 14, Cigna motioned to end its merger contract with Anthem and sued the insurer for almost $14.85 billion. In accordance to report, Cigna claimed that the Anthem undermined its business by obtaining confidential information and harassing Cigna’s customers.
- Cigna claimed that Anthem allegedly “misappropriated” confidential data from Cigna and said it would use innovative strategies of Cigna if the deal was blocked, in accordance to the lawsuit.
- Moreover, Cigna’s lawsuit blamed Anthem of agreeing to the merger for its own benefit, which Cigna said led to the transaction’s failure. “Anthem’s destructive conduct must come to an end,” Cigna stated in the lawsuit.
- In its counter lawsuit filed on the day of Feb. 15, Anthem sued to block Cigna from unilaterally ending their contract. Anthem argued Cigna was responsible for the failure of court to approve the proposed merger agreement. Particularly, the lawsuit argued Cigna CEO David Cordani sabotaged the deal after Cigna evaluated the agreement to make Mr. Cordani president and COO of the combined entity was insufficient.
- Anthem also argued the insurers’ merger agreement needed both parties to appeal the decision of court, which Cigna did not pursue following the block. Anthem said there might be a “path forward” for the deal as the Justice Department lawyers transition to President Donald Trump’s administration.
A Delaware Chancery Court judge ruled in the favor of Anthem Feb. 15, momentarily banning Cigna from motioning to end the 2 payers’ merger contract. Arguments for Anthem’s appeal of the U.S. District Court’s decision to block the deal between Anthem and Cigna will be held on the day of March 24, in accordance to the report.
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