- 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.
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.