The class-action lawsuit was brought after Cigna faced regulatory issues following its acquisition of HealthSpring, a Medicare insurer, in 2012. The plaintiff argued that a series of Cigna’s public filings misstated the insurer’s success with the deal’s regulatory compliance. Regulators suspended HealthSpring’s enrollment in 2016, according to Reuters.
However, a judge found the case failed to allege the public filings had materially false statements. Instead, a panel of judges said the statements depicted “a company actively working to improve its compliance efforts, rather than one expressing confidence in their complete [or even substantial] effectiveness,” according to the New York Law Journal.
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