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Cigna sues CVS, ex-pharmacy head over noncompete clause

Calling CVS Health its "chief competitor," Cigna claims its offer to Bricker is retaliation for loss of the Centene PBM contract.

Jeff Lagasse, Editor

Photo: Blanchi Costela/Getty Images

Cigna has filed a lawsuit against CVS Health and Amy Bricker, who until recently served as head of Express Scripts, Cigna's pharmacy benefit manager subsidiary. Bricker had been slated to join CVS Health as the chief product officer for its consumer segment.

The lawsuit alleges this violates Cigna's noncompete agreement, with the company saying it would be "immediately and irreparably harmed" if Bricker's hire is allowed to continue.

Cigna said that while most of the people who work for the company are not bound by noncompete agreements, there are 16 who are. Bricker, being one of the highest-paid employees at the company, was one of them.

Calling CVS Health its "chief competitor," Cigna maintained that Bricker would invariably be asked to reveal Cigna's "confidential" business information to the benefit of her new employer. This, said Cigna, is despite the fact that Bricker had recently accepted a large raise, and was allegedly aware of the noncompete agreement.

WHY THIS MATTERS

Among Cigna's concerns are Bricker's knowledge of its supply chain, strategic direction and product development initiatives. The insurer is seeking an injunction to hold Bricker to her "contractual obligations," and is also seeking monetary damages.

If Bricker is allowed to continue on to CVS, she's set to helm a new product strategy and innovation initiative for consumer health products, and will work with business units that will compete with Evernorth, Cigna's health services segment.

Another of Cigna's concerns revolves around Bricker's knowledge and contribution to business proposals when the insurer was competing with CVS over Centene's PBM contract. Previously, CVS had managed Cigna's PBM contract, but Cigna secured that business in October 2022.

CVS had predicted the loss of that business would translate into a revenue decline in 2024 in the vicinity of $2 billion. Cigna said CVS' offer to Bricker was a "desperate effort" to retaliate for this loss of business.

CVS Health said it did not comment on ongoing legal matters.

THE LARGER TREND

The lawsuit was filed Thursday in U.S. District Court in Missouri federal court. Cigna demands a jury trial.

CVS announced on January 23 that Bricker was named executive vice president and chief product officer – consumer, a newly created role. 
 

Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com