Appeals court upholds decision to block Anthem bid for Cigna

30 April 2017, 12:05 | Andres Norman

Appeals court upholds decision to block Anthem bid for Cigna

Appeals court upholds decision to block Anthem bid for Cigna

A DC Circuit court upheld a lower court ruling blocking a merger between healthcare benefits providers Anthem (ANTM) and Cigna (CI) Friday, likely ending Anthem's takeover bid. Now comes the legal fight over the deal's failure.

Anthem told the DE court in an April 26 filing that there were "meaningful opportunities" to complete deal, saying it was seeking a settlement with the Justice Department under the new Trump administration. On November 21, 2016, the plaintiffs proceeded to trial against Anthem and Cigna before U.S. District Court Judge Amy Berman Jackson of the D.C. District Court.

Cigna said in a regulatory filing that it was continuing to work through the litigation process, and a spokesman declined to comment beyond the filing.

In this latest development, according to Bloomberg reporters David McLaughlin and Andrew Harris in an article posted today, the U.S. Court of Appeals for the District of Columbia upheld the lower court ruling by a 2-1 vote, according to an order issued Friday.

The companies still have the option of another appeal to try to save the deal. Of the $2.4 billion in claimed savings, Israel projected that $1.5 billion would result from Cigna customers accessing Anthem's lower rates, while $874.6 million would result from Anthem customers accessing Cigna's lower rates.

Russian hackers 'target' presidential candidate Macron
Kremlin Spokesman Dmitry Peskov dismissed allegations of any Russian interference in the French elections on Monday. Emmanuel Macron, French presidential candidate, speaks to journalists in Bazainville, France, on April 18.

Bills decline to match Patriots' offer for RB Gillislee
Unlike the Hogan situation, the Bills will actually get compensation for declining to match the offer sheet to Gillislee. Bills declined to match RB Mike Gillislee's two-year, $6.4 million offer sheet, making Gillislee a New England Patriot.

Sessions to tour Arizona-Mexico border Tuesday
He also urged prosecutors to consider charging those illegally in the country with felony identity theft and document fraud. Sessions was also set to speak with service members at Luke Air Force Base near Phoenix.

The American Medical Association said it is pleased with the court's decision. The Anthem-Cigna merger is the largest proposed merger in the history of the health insurance industry, the appeals court notes.

Bloomfield-based Cigna was a reluctant partner in the merger, and has a pending lawsuit in a DE chancery court to end its relationship with Anthem and seek a $1.85 billion breakup fee and another $13 billion in damages resulting from the merger effort. "The problem with this merger, if there is one, is in its effects in the upstream market - namely, its effects on hospitals and doctors as a result of Anthem-Cigna's enhanced negotiating power", Kavanaugh wrote.

Anthem was granted a temporary restraining order against Cigna shortly thereafter. If not, Kavanaugh said, he'd have allowed the combination. He said he would send the case back to the lower court for further deliberations.

Concurring with Rogers was U.S. Circuit Judge Patricia Millett, a 2013 selection by President Barack Obama.

This combo of file photos shows signage for health insurers Cigna Corp., and Anthem Inc. The Delaware cases are Anthem Inc. v. Cigna Corp., No. 2017-114, Delaware Chancery Court (Wilmington) and Cigna Corp. v. Anthem Inc., 2017-0109, Delaware Chancery Court (Wilmington).



Other News

Trending Now

Here's How Project Scorpio Games Look in 4K vs 1080p
To get a better look at these images, which use a slider so you can truly see the difference, head over to Window's Central . We will keep you updated on the console as soon as more comes in on it, so stay tuned for all the latest news.

Fiat Chrysler Automobiles NV (FCAU) Stock Roars on Q1 Earnings Results
They use historic price data to observe stock price patterns to predict the direction of that price going forward. Jefferies Initiates Coverage on the company's stock to Buy on 8/09/16 with no specific Price Target.

BlackBerry KeyOne lands in the UK
The handset also comes with BlackBerry's trademark built-in QWERTY keyboard; in this case, it's a capacitive four-row keypad. BlackBerry's latest smartphone has finally launched in the United Kingdom , although it's not easy to get your hands on one.

Price Target Analysis PayPal Holdings, Inc. (PYPL)
A month ago, they told us to expect earnings of US$0.42 per share while three months ago their EPS consensus estimate was US$0.42. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink .

Trump ladies: Melania and Ivanka have a 'frosty' relationship
Most recently, pictures circulated of the President descending the stairs of a plane way ahead of the First Lady . Here are five things you may not have known about the model, businesswoman and first lady.

Sonny Perdue gains confirmation to become nation's ag chief
He also visited Cuba, China and South America as part of several trade missions aimed at growing exports for Peach State farmers. Many farmers are relying on Perdue to revive their businesses as they are suffering a downturn in the market.

Trump White House drops policy of identifying visitors
In fact, former President Barack Obama's photographer is gaining some traction as one of the internet's favourite Trump-trollers. After Trump took office, a liberal watchdog group has taken over the fight, filing a lawsuit on Monday demanding the records.

Turkish strikes kill 3 in northern Syria
The Syrian Kurdish forces, backed by the USA -led coalition, are closing in on IS de facto capital, the city of Raqqa. PKK is designated a terrorist organization by Turkey, the United States and the European Union.

Nadal wins 10th Monte Carlo title, makes history
Outclassed by an iconic champion today, Ramos-Vinolas will reap the rewards of a breakthrough tournament. Nadal will face Albert Ramos-Viñolas in the final at Court Ranier III on Sunday.

Here's How Hillary Clinton's Concession Speech Came Together
Steve Schale , among the most reliable Democratic strategists in the state, informed Clinton's campaign they were short on votes. Now she's taking flak for getting too deep in the weeds in the speech she gave at her campaign's first big rally in NY .