Healthcare Insurance Giants Elevance Health, Cigna Settle Long-Standing Contract Dispute, Paving Way To Appeal $15B Lawsuit
Portfolio Pulse from Vandana Singh
Elevance Health Inc (ELV) and Cigna Group's Express Scripts (CI) have settled a contract dispute, allowing Elevance to appeal the dismissal of a $14.8 billion lawsuit against Express Scripts for overcharging prescription drugs. The lawsuit, initiated in 2016, was dismissed last March, but a secondary claim was allowed to proceed. The settlement concludes the case, and Elevance plans to appeal to the 2nd U.S. Circuit Court of Appeals. ELV shares slightly rose, while CI shares fell on the last check Tuesday.
November 14, 2023 | 3:22 pm
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POSITIVE IMPACT
Elevance Health settled a legal dispute with Cigna's Express Scripts, allowing it to appeal a dismissed $14.8 billion lawsuit. ELV shares saw a slight increase.
The settlement of the dispute removes a legal overhang and provides a clearer path for Elevance to potentially recover damages, which could be viewed positively by investors. The slight uptick in ELV shares suggests a modest positive market reaction.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Cigna's Express Scripts settled with Elevance Health, concluding a legal case. CI shares dropped by 2.34% on the last check Tuesday.
The settlement may bring concerns about potential liabilities or costs associated with the appeal process, which could negatively impact investor sentiment. The decrease in CI shares indicates a negative short-term market reaction.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80