Anthem: Cigna "cut us off at the knees" before merger
Anthem’s general counsel told a judge yesterday that Cigna "cut us off at the knees," sabotaging the proposed merger between the two insurers, Bloomberg reports.
What they’re saying: The nearly $50 billion merger would have involved Anthem buying Cigna. But Cigna CEO David Cordani was insistent on running the new, combined company, and Cigna grew uncooperative after he was rebuffed, Anthem general counsel Thomas Zielinski said in court, per Bloomberg.
- Zielinski accused Cigna of undermining plans for combining the two companies' operations and responding to the government's antitrust concerns, including being unwilling to sell any of its assets to help get the merger approved.
The other side: Cigna has accused Anthem of using the merger to steal sensitive information and customers.
Where it stands: Anthem says it's entitled to $20 million from Cigna because of the deal's collapse, while Cigna says it's entitled to $16 million from Anthem. The trial to sort all this out is just getting started.
Go deeper: Health insurance is as big as Big Tech