Cigna Sues Anthem For $15 Billion

Cigna also sued Anthem in Delaware Court of Chancery, seeking a $1.85 billion reverse termination fee pursuant to the terms of the merger agreement and additional damages exceeding $13 billion.

The companies have been quarreling for months, including during a federal trial over whether their proposed $48 billion merger violated US antitrust law.

On Jan. 23, U.S. District Judge Robert Bates ruled that the merger of the two insurers would reduce competition in the private Medicare Advantage market for seniors.

The Justice Department challenged both deals-Aetna's attempt to buy Humana, and a planned merger between Cigna and Anthem-on the grounds that they violated antitrust law. Aetna will pay Humana a $1 billion breakup fee.

An Aetna spokesman said the company was considering an appeal.

Both companies would have combined to form the second-largest health insurer in the US.




Anthem on January 18 extended its merger agreement with Cigna through April 30, 2017.

The dissolution of the Aetna-Humana is proceeding more smoothly.

The decision follows a federal court order that sided with the DOJ's argument that the deal would lessen competition in the Medicare and Medicare Advantage market.

In January, a federal judge ruled against Aetna's proposed acquisition of Humana in a victory for former President Obama's Justice Department, which sued Aetna past year.

Aetna spokesman TJ Crawford said the insurer was reviewing the decision "and giving serious consideration to an appeal after putting forward a compelling case". Ana Gupte, an analyst with Leerink Partners wrote the deal was viewed "as completely dead at this point" in a note last week. The deal would have given Aetna the opportunity to significantly expand its presence in the fast-growing market for Medicare Advantage plans, privately run versions of the federal Medicare program for people who are over 65 or disabled.

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