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Appeals court dismisses Cigna fraud case
Modern Healthcare

A federal appeals court on Tuesday affirmed a lower-court ruling dismissing a lawsuit against insurer Cigna Corp. for allegedly committing fraud by misleading shareholders about its compliance with Medicare regulations.

The three-judge appellate panel agreed that Cigna’s alleged misstatements about its Medicare subsidiary HealthSpring can’t be considered fraud.

“We conclude that a reasonable investor would not rely on the challenged statements as representations of regulatory compliance,” Judge José Cabranes wrote for the unanimous panel.