Centene’s $2.2 Billion Magellan Health Deal Hit With Challenge

A Magellan Health Inc. investor sued it in Delaware on Wednesday, seeking to halt its $2.2 billion sale to Centene Corp. over allegations that its board got job promises and other perks to favor an underpriced deal with the managed care giant over potential competing offers.

The lawsuit targets the $95-per-share deal announced by the companies in a joint statement in January. It accuses the board of intentionally ignoring possible acquisition proposals from as many as six other interested companies, then using deal protection devices to “lock up” the sale to Centene.

Those mechanisms—including a no-solicitation clause, a matching rights ...