HealthSpring Investor Tries To Halt Cigna Purchase

Law360, Wilmington (October 28, 2011, 2:23 PM EDT) -- A HealthSpring Inc. shareholder hit the company and its board with a class action Friday over Cigna Corp.'s proposed $3.8 billion acquisition of the health insurer, claiming the deal advantaged insiders at the expense of shareholders.

The deal should be blocked because the Nashville, Tenn.-based company’s directors, particularly Chairman and CEO Herbert Fritch, accepted an inadequate price while securing financial and employment benefits for insiders, breaching their duty to shareholders, according to the complaint lodged by Hilary Coyne in Delaware Chancery Court.

“The $55.00-per-share price fails...
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