Bloomfield, Conn.-based Cigna is terminating its proposed merger agreement with Indianapolis-based Anthem.
Here's what you should know.
1. A federal district court ruled against the merger on Feb. 8, 2017, citing the combined payers would limit competition as a primary reason for the ruling.
2. Cigna released a statement Feb. 14, 2017 saying it didn't believe the transaction would earn regulatory approval, and that terminating the agreement would be best for its shareholders.
3. Cigna filed a suit against Anthem in Delaware's Court of Chancery Feb. 14, 2017. Cigna needs a court order to limit Anthem from extending the termination date. The suit will allow the Cigna to collect its $1.85 billion merger breakup fee.
4. In addition to the breakup fee, Cigna is seeking $13 billion in damages. In the statement, Cigna said, "These additional damages include the amount of premium that Cigna shareholders did not realize as a result of the failed merger process. This action is necessary to enforce and preserve Cigna’s rights and protect the interests of its shareholders."
5. Anthem released a response saying "Under the terms of the merger agreement, Cigna does not have a right to terminate the agreement. Therefore, Cigna’s purported termination of the merger agreement is invalid," Reuters reports.