A merger between Cigna and Anthem failed because Cigna’s CEO and board intentionally sabotaged the proposed $48 billion deal, according to an unsealed lawsuit filed by Cigna investors.
The lawsuit, cited by Bloomberg, was filed by the Massachusetts Laborers’ Annuity Fund. It seeks unspecified damages from the botched deal to be returned to Cigna investors. The lawsuit was filed under seal Nov. 17 in the Delaware Chancery Court and unsealed Nov. 23.
In its lawsuit, the Massachusetts pension fund accuses Cigna CEO David Cordani and the company’s board of using “black-ops-style” measures to intentionally “blow up” the transaction. Specifically, the lawsuit alleges that Mr. Cordani began working to sabotage the deal after he wasn’t picked for the top position in the merged company.
Becker’s reached out to Cigna for comment on the most recent lawsuit, but did not receive a response by publication. This article will be updated if more information becomes available.
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In 2015, Anthem extended an offer to acquire Cigna in a $48.9 billion cash and stock deal. However, the deal ended two years later due to antitrust concerns. So far, the organizations have unsuccessfully battled in court to collect breakup fees and damages.
Source: Becker’s Hospitalreview