Delaware’s highest court on Monday axed Cigna Corp.’s bid to collect a $1.85 billion termination fee over its failed merger with Anthem.
The state’s Supreme Court did not elaborate why the Bloomfield, Conn.-based insurer could not clawback the fine, according to Law360. The announcement upholds an August 2020 decision made by the Delaware Chancery Court. It concludes a bitter, years-long battle between the two payers and their top executives tied to the failure of their $54 billion merger, which would have created the nation’s largest insurer.
The merger was called off in 2017 after a district court issued a permanent injunction against the deal. After the agreement collapsed, Cigna and Anthem sued each other, arguing that the other derailed the merger. Cigna sued for $14.7 billion in damages, plus a merger break-up fee of $1.8 billion. Anthem countersued for damages of $21.1 billion.
The Delaware Chancery Court wrote that “neither side can recover from the other. Each must deal independently with the consequence of their costly and ill-fated attempt to merge.”
Neither Cigna nor Anthem immediately responded to interview requests.