Tuesday 14 February 2017 9:15 pm

Anthem hits back at Cigna’s $15bn lawsuit

Health insurer Anthem has hit back at Cigna after it said it was terminating a merger between the two companies and wants $15bn (£12bn) in fees and damages.

Anthem has said that Cigna cannot end the deal between the two companies.

Cigna has filed a lawsuit demanding that Anthem pay $13bn in damages and $1.85bn in break up fees after a judge ruled the two could not merge.

But, Anthem said in a statement today: "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."

Last week, a federal judge ruled that the merger of two health insurance firms was illegal according to antitrust law.

But, Anthem is pushing forward with an appeal, on the basis that 99 per cent of the votes cast by both shareholders of the companies approved of the merger.

Cigna said in a statement: "This action is necessary to enforce and preserve Cigna’s rights and protect the interests of its shareholders.

"The company believes strongly in the merits of its case and hopes that this matter is rapidly resolved."

Anthem maintains that the merger could save Americans $2bn in medical costs per year, and said it was "disappointed" with the decision of the US court.