A Federal Judge Shuts Down Anthem And Cigna Merger

The U.S. Justice Department sued last July to stop the merger between Anthem and Cigna. The $54 billion deal would have created the largest U.S. health insurer by membership.

On Wednesday, Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia, ruled against Anthem.

According to the Justice Department, the deal would likely lead to higher prices for big, nationwide employers whose workers use a broad network of services.

If the deal fails to win regulatory approval, Cigna is entitled to receive a $1.85 billion break-up fee from Anthem.

Disclaimer: We have no position in Anthem (NYSE: ANTM) nor CIGNA Corporation (NYSE: CI) and have not been compensated for this article.