Michigan Contests BCBS For-Profit Acquisition

Law360, New York (July 3, 2008, 12:00 AM EDT) -- State Attorney General Mike Cox has filed a lawsuit against the nonprofit health care company Blue Cross Blue Shield of Michigan, asking that the company be ordered to divest itself of a for-profit company acquired through the State Accident Fund.

The lawsuit, filed Wednesday in the Michigan Circuit Court, accuses BCBS of unlawfully acquiring CWI Holdings Inc., a Delaware insurance holding company that owns 100% of the shares of CompWest Insurance Co., a for-profit property and casualty insurance company.

BCBS acquired CWI Holdings for $127.4 million...
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