UnitedHealthcare is suing Broadcom, alleging that the tech giant is looking to impose “exorbitant price increases” on software used by the insurer.
The heavily redacted lawsuit, filed in the U.S. District Court for Minnesota on April 2, claims that Broadcom is breaching its contract regarding its “CA software” that UnitedHealthcare has been using since 2006 for claims processing and data management. UnitedHealth claims that switching to an alternative software could take years.
According to the complaint, Broadcom is allegedly demanding hundreds of millions of dollars more to continue providing access to the software, which UnitedHealth claims is in violation of their contract’s provisions on price increases. UnitedHealth’s access to the software is set to expire on April 18.
UnitedHealth is asking the court to issue an injunction to prevent Broadcom from cutting off access and is also seeking damages and other forms of relief for the disruption the alleged breach of contract is causing. Broadcom acquired CA, Inc. in 2018.
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