Indianapolis-based Anthem and Bloomfield, Conn.-based Cigna accused each other of sabotage in recent lawsuits filed after a U.S. District Court blocked their proposed $54 billion merger Feb. 8, according to a Bloomberg report.
Here are five takeaways from the lawsuits.
1. In a lawsuit filed Feb. 14, Cigna motioned to terminate its merger agreement with Anthem and sued the insurer for roughly $14.85 billion. Cigna claimed Anthem undermined its business by obtaining confidential information and harassing Cigna's customers, according to the report.
2. Cigna said Anthem allegedly "misappropriated" confidential information from Cigna and said it would use Cigna's innovative strategies if the deal was blocked, according to the lawsuit.
3. Additionally, Cigna's lawsuit accused 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 said in the lawsuit.
4. In its counter lawsuit filed Feb. 15, Anthem sued to block Cigna from unilaterally terminating their agreement. Anthem argued Cigna was responsible for the court's failure to approve the proposed merger agreement. Specifically, the lawsuit argued Cigna CEO David Cordani sabotaged the deal after Cigna determined the agreement to make Mr. Cordani president and COO of the combined entity was insufficient.
5. Anthem also argued the insurers' merger agreement required both parties to appeal the court's decision, which Cigna didn't pursue following the block. Anthem said there may 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 favor of Anthem Feb. 15, momentarily banning Cigna from motioning to end the two payers' merger agreement. Arguments for Anthem's appeal of the U.S. District Court's decision to block the deal will be held March 24, according to the report.