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Cigna Corp. officials did everything they could to sabotage a $48.9 billion merger with Anthem Inc., including refusing to consider divestitures that would have helped the deal win regulatory approval, Anthem’s general counsel told a judge.

Cigna refused to turn over data Anthem executives needed to convince U.S. Justice Department attorneys of the merger’s value to customers, Thomas Zielinski, Anthem’s top lawyer, testified Monday in the opening of a damages trial tied to the transaction’s collapse.

After Cigna Chief Executive Officer David Cordani expressed unhappi...

Wells Fargo & Co. boosted an estimate for potential legal losses by $500 million while disclosing that it’s in early talks to resolve another round of investigations into sales abuses at its branches.

The San Francisco company said it might have to spend as much as $2.7 billion more than what it set aside by the end of December to resolve a variety of investigations and other legal troubles — up from $2.2 billion at the end of September. The higher estimate for “reasonably possible” legal losses — essentially a worst-case scenario — shows risks grew as the bank and...

Cigna Corp. officials did everything they could to sabotage a $48.9 billion merger with Anthem Inc., including refusing to consider divestitures that would have helped the deal win regulatory approval, Anthem’s general counsel told a judge.

Cigna refused to turn over data Anthem executives needed to convince U.S. Justice Department attorneys of the merger’s value to customers, Thomas Zielinski, Anthem’s top lawyer, testified Monday in the opening of a damages trial tied to the transaction’s collapse.

After Cigna Chief Executive Officer David Cordani expressed unhappi...

The lawsuit accuses Fidelity of requiring "secret" payments from funds to make up for declining amounts of revenue sharing payments received by the firm as a result of the increasing use of passive mutual funds, institutional and R6 share classes of mutual funds and collective trusts.

A participant in the T-Mobile USA, Inc. 401(k) Retirement Savings Plan and Trust has sued FMR (Fidelity) and several of its affiliates claiming the firm engaged in prohibited transactions by charging a “secret” fee for mutual funds and engaging in self-dealing.

In a statement to PLANA...

The parties in an excessive fee lawsuit filed against the committee that oversees the Anthem 401(k) plan have reached a settlement agreement.

A February 19 docket entry in the case of Bell v. Anthem says, “The parties have reached a resolution subject to class approval.” The judge ordered that on or before March 15, 2019, the parties are to file a motion for preliminary approval of class settlement. Details of the settlement will be available then.

In the complaint, it is alleged that plan fiduciaries allowed unreasonable expenses to be charged to participants f...

Wells Fargo has been hit with a proposed class action accusing it of violating numerous federal and state laws by foreclosing on hundreds of homeowners who were mistakenly denied mortgage relief because of a computer glitch the bank disclosed last year.

Filed on Friday in a Washington state federal court, the lawsuit said the bank offered some compensation to affected homeowners but did not adequately pay them for going through “the nightmare” of foreclosure.

To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/2Nmbnkl

via Reuters

A federal jury decided Tuesday that insurer Blue Shield of California underpaid a California hospital system for emergency medical services provided to Blue Shield's members.

The jury in the U.S. District Court in San Francisco determined that Blue Shield must pay out-of-network NorthBay Healthcare Group 67% of its billed charges since the end of 2016. King & Spalding, the law firm representing NorthBay, estimated that it would recover more than $16 million, but the exact amount has not yet been decided.

In a statement, however, Blue Shield said the case went to tria...

Fairfield, Calif.-based NorthBay Healthcare may recover $16 million-plus from Blue Shield of California after a federal jury in San Francisco found the health insurer underpaid the hospital system for emergency care.

On Feb. 13, after a six-day trial, the jury found Blue Shield owed NorthBay 67 percent of its billed charges, according to law firm King & Spalding, which represented NorthBay. The exact amount of damages has yet to be determined, but is currently estimated at more than $16 million.

The case stems from December 2016, when Blue Shield and NorthBay ended...

Jacksonville-based Fidelity National Information Systems Inc. (NYSE: FIS) has been accused of defrauding a client and a California regulator as well as orchestrating a conspiracy to conceal its behavior.

West Palm Beach-based Ocwen Loan Servicing LLC, a large national mortgage company, filed the suit against FIS and its subsidiary, Fidelity Information Services, in a Sacramento, California court Tuesday after FIS charged it more than $60 million for about a year of audit services.

Ocwen originally filed a suit in 2017 against only the subsidiary, but emails, whistleb...

Ditech Holding Corporation ("Ditech Holding") today announced that it, along with certain of its subsidiaries including Ditech Financial LLC and Reverse Mortgage Solutions, Inc. (collectively with Ditech Holding, the "Company"), has entered into a Restructuring Support Agreement (the "RSA") with certain lenders holding more than 75% of Ditech Holding's term loans (the "Consenting Term Lenders"). The RSA provides for a restructuring of the Company's debt while the Company continues to evaluate strategic alternatives. Under the RSA, the Company will pursue a recapita...

A lawsuit alleging Wells Fargo improperly compensated its California-based mortgage loan officers could have broader ramifications now that it has been granted class certification.

At issue in Kang v. Wells Fargo Bank is whether alleged clawbacks of hourly wages, vacation and separation pay from earned sales commissions violated state laws, according to an order filed Feb. 6 in U.S. District Court in California's Northern District.

Wells Fargo would allegedly compensate its mortgage sales force through advances on their commissions at a rate of roughly $12 per hour,...

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