Cigna settles shareholder class-action lawsuits over Anthem deal: 5 things to know

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Bloomfield, Conn.-based Cigna has settled a string of shareholder class-action lawsuits that were filed over its proposed merger with rival health insurer Indianapolis-based Anthem, according to a recent Securities and Exchange Commission filing.

Here are five things to know about the class-action lawsuits and the settlement.

1. Anthem entered into a definitive agreement to acquire Cigna in July in a cash and stock transaction valued at $54.2 billion. Under the deal, Cigna stockholders will receive $103.40 cash and 0.5152 Anthem common shares for each Cigna share.

2. After the merger was announced, Cigna shareholders filed class-action lawsuits claiming the deal undervalued Cigna.

3. Cigna did not admit any wrongdoing and said it agreed to settle the six class-action lawsuits "solely to avoid the costs, risks and uncertainties inherent in litigation."

4. Cigna did not disclose how much the company agreed to pay to settle the lawsuits.

5. If the settlement is approved by the court, the litigation will be dismissed, and "all claims that were or could have been brought in any actions challenging any aspect of the merger, the merger agreement and any related disclosures will be released," according to the SEC filing.

More articles on payer issues:

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UnitedHealth may exit ACA exchanges due to losses: 7 things to know
Leading health insurers collectively add 4.3M members in Q2

 

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