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Cigna scraps merger with Anthem, sues rival for $13 billion dollars

Feb 15, 2017, 01:33 IST

In a Friday, May 6, 2016 photo, LSU medical student Felicia Venable, left, briefs fellow students and medical residents on a patient they are visiting during daily rounds with a group of medical residents and medical students at Our Lady of the Lake Regional Medical Center in Baton Rouge, La.Gerald Herbert/AP Images

Cigna is done with its proposed merger with Anthem.

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The health insurance company said it was terminating the merger with rival Anthem after a federal judge blocked the deal over anti-competitive grounds. The merger would have made the combined company the largest health insurer in the US based on the number of lives covered.

Additionally, Cigna will sue Anthem for a $1.85 billion reverse break-up fee and an additional $13 billion in damages according to Bloomberg.

One of the factors in the decision by a federal judge to block the merger was Cigna's seeming distaste with the deal.

More to come...

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