DELAWARE COURT DENIES INJUNCTION; ANTHEM TERMINATES PLANNED MERGER WITH CIGNA

On May 11, Vice Chancellor J. Travis Laster of the Delaware Court of Chancery denied Anthem’s request to enjoin Cigna from backing out of the two companies’ planned merger while Anthem tries to preserve the deal in the face of rulings by the federal courts in the District of Columbia that the merger would be anticompetitive. (More information about those rulings can be found here and here.) Although Vice Chancellor Laster stayed his ruling to give Anthem a chance to appeal to the Delaware Supreme Court, Anthem announced on May 12 that it would terminate the deal. Both Anthem and Cigna are seeking billions of dollars in damages relating to the failure of the merger, which Cigna blames in part on rules of the Blue Cross and Blue Shield Association that prevent Anthem from competing with other Blues.