(Updates with excerpt from complaint in third paragraph.)
Oct. 28 (Bloomberg) -- Health-maintenance organization Healthspring Inc. was sued over its planned $3.8 billion purchase by Cigna Corp. by an investor claiming the price was inadequate.
Healthspring shareholder Hilary Coyne contends that company directors, duty-bound to get the best possible price for the stock, didn’t take the necessary steps to maximize its value.
“Healthspring is poised for significant financial gains” and “the $55 per share price fails to adequately account for the company’s anticipated growth,” Coyne’s lawyers said in court papers in Delaware Chancery Court in Wilmington.
Cigna, based in Bloomfield, Connecticut, said Oct. 24 it would pay cash for Healthspring, based in Franklin, Tennessee, to triple the number of Medicare customers it serves. Such managed-care plans are among the fastest-growing products for insurers as baby boomers age.
Karey Witty, Healthspring’s chief financial officer, didn’t immediately return voice and e-mail messages seeking comment on the lawsuit.
The case is Coyne v. Healthspring Inc., CA6989, Delaware Chancery Court (Wilmington).
--Editors: Charles Carter, Stephen Farr
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