September 2, 2020

Around the nation: Court rules neither Anthem nor Cigna can recover damages from failed merger

Daily Briefing

    The Delaware Chancery Court on Monday ruled that neither Anthem nor Cigna can recover billions of dollars in damages resulting from their failed merger agreement, in today's bite-sized hospital and health industry news from Delaware, Illinois, and Maryland.

    • Delaware: The Delaware Chancery Court on Monday ruled that neither Anthem nor Cigna could recover billions of dollars in damages resulting from their failed merger agreement. Cigna in a lawsuit was seeking to obtain around $15 billion in damages and termination fees from Aetna, which Cigna claimed it was entitled to under the companies' proposed merger agreement. At the same time, Anthem was seeking $21 billion in damages from Cigna, as Aetna claimed that Cigna sabotaged the companies' proposed merger by not challenging the Department of Justice's opposition to the deal. However, the Delaware court ruled that neither company is entitled to the damages they're seeking, and the companies "must deal independently with the consequences of their costly and ill-fated attempt to merge" (Livingston, Modern Healthcare, 8/31; Yasiejko/Feeley, Bloomberg Law, 8/31).

    • Illinois: Walgreens Boots Alliance on Monday announced that John Standley is the company's new president. Standley previously served as CEO and chair of Rite Aid, as well as CEO of the supermarket chain Pathmark and as chair of the National Association of Chain Drug Stores. Standley in his new role succeeds Richard Ashworth, who left Walgreens in May to become CEO of Tivity Health (AP/Modern Healthcare, 8/31; Japsen, Forbes, 8/31; Anderson, Becker's Hospital Review, 8/31).

    • Maryland: CMS on Friday announced it has given a total of $10 million to 30 organizations that will act as navigators to help people enroll in Affordable Care Act exchange plans during the upcoming open enrollment period, which is scheduled to begin Nov. 1. The navigator groups will assist consumers with shopping for and enrolling in exchange plans in states that use the federal exchange for enrollment (Livingston, Modern Healthcare, 8/28).
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