Dive Brief:
- Cigna has agreed to settle numerous class-action shareholder lawsuits alleging the Cigna-Anthem merger "shortchanged investors," according to Modern Healthcare.
- The amount of the settlement was not disclosed, but it involved six class-action complaints filed after the two insurers announced their $54.2 billion deal this summer.
- Shareholders of Anthem and Cigna will vote to approve or reject the merger later this week, but the final nod must be given by the federal government.
Dive Insight:
Humana also settled shareholder lawsuits last month that challenged its merger with Aetna. Cornerstone Research, a consulting firm, reported shareholder lawsuits involving large mergers and acquisitions ($100 million and up) have more than doubled since 2007 from 44% to 93% in 2014.
Each of the six class-action lawsuits alleged the final deal undervalued Cigna and the merger process reflected conflicts of interest.
The merger is still under review by the U.S. Justice Department's antitrust division, with a decision expected by next year.
Although both companies anticipate federal approval, they expect they will have to divest health plans in areas of high membership overlap, reported Modern Healthcare.