After a court ruling in Delaware, Anthem has notified Cigna that their proposed $54 billion merger is off, but that doesn’t mean the two insurance companies are amicably parting ways.
Anthem has stated that it will not pay Cigna a $1.85 billion merger termination fee due to the company’s belief that Cigna did not meet the legal requirements for receiving the money.
“In light of yesterday’s decision and Cigna’s refusal to support the merger, however, Anthem has delivered to Cigna a notice terminating the Merger Agreement,” Anthem said in a statement.
“Cigna has failed to perform and comply in all material respects with its contractual obligations. As a result, Cigna is not entitled to a termination fee.”
Going on offense, Anthem blamed Cigna for “repeated willful breaches of the Merger Agreement,” and a “successful sabotage,” of its brand and business. Anthem further claimed the doomed acquisition resulted in massive damages which they plan to “vigorously pursue.”
In a counter-statement from Cigna, the insurer claimed Anthem willfully failed to pursue all legal avenues to obtain regulatory approval of the merger, and demanded the “prompt payment of the $1.85 billion reverse termination fee.”
This fee is in addition to a current $13 billion lawsuit for damages against Anthem for alleged harm that it caused Cigna and its shareholders.
Anthem and Cigna have been in legal disputes with each other since the US Justice Department won its antitrust case to block the merger of the two health insurers.
Full Content: Anthem
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
French Regulator Meat-Cutting Sector Case Following Antitrust Review
May 15, 2024 by
CPI
Arizona Attorney General Files Suit Against Amazon Over Unfair Business Practices
May 15, 2024 by
CPI
Varsity Spirit and Private Equity Owners Settle Class Action Antitrust Suit
May 15, 2024 by
CPI
US Senators Present AI Strategy, Call for Funding Surge
May 15, 2024 by
CPI
Hausfeld Strengthens Competition Bench with Key Hires in London and Germany
May 15, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI