Cigna Sues CVS, New Pharmacy Executive Over Noncompete (2)

Cigna Corp. sued CVS Health Corp. and its new chief product officer Amy Bricker for allegedly violating her noncompete agreement.

Bricker served as the head of Cigna’s Express Scripts pharmacy benefits unit, and her appointment to CVS was announced earlier this week. The lawsuit comes within weeks of the Federal Trade Commission’s proposed ban on noncompete clauses in employment contracts.

Her new role would “inevitably require her to use and disclose Cigna’s confidential and trade secret business information,” Cigna said in the complaint filed Thursday in the US District Court for the Eastern District of Missouri. Assuming the role would violate restrictive covenants she’s accepted each year since 2020, which include a two-year restriction on working for competitors in any role, Cigna said.

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CVS’s poaching of Bricker is a “desperate effort” to retaliate against Cigna for securing a contract with Centene Corp., which was previously managed by CVS, Cigna said. The loss of the contract would create a $2 billion decline in CVS’s 2024 revenue, according to the complaint.

Bricker received a high six-figure bonus as a result of her contribution to the contract, and was “privy to the business’s most highly sensitive information,” including supply chain, product development, and sales strategy.

She intentionally and knowingly deleted all data on her company-issued iPhone after telling Cigna security personnel she needed to “get some numbers off the phone” when they went to her home to collect it, according to the complaint.

Bricker is one of only 16 employees bound by this non-competition agreement, according to the complaint, which is reserved only for the “most senior executive leaders.” Her influence and significance is demonstrated by her appearances on behalf of Cigna before Congress, the FTC, and investors, Cigna said.

She also owes Cigna more than $1.5 million for value she realized from shares because of the alleged violations, Cigna said.

Bricker resigned on Jan. 10, and her last day of employment with Cigna is scheduled for Feb. 3, Cigna said. The company allegedly attempted to resolve the dispute with CVS before negotiations reached an impasse on Jan. 23, when CVS issued a press released about the hiring.

Cigna seeks a preliminary injunction to prevent Bricker from starting her new position in February.

“It is hard to imagine a more clear and direct competitor of Cigna than CVS,” Cigna said.

Causes of Action: Missouri Uniform Trade Secrets Act, Computer Fraud and Abuse Act, and common law unfair competition, breach of contract, unjust enrichment, conversion

Relief: Temporary, preliminary, and permanent injunctive relief; compensatory and exemplary damages; costs; and attorneys’ fees.

Response: CVS doesn’t comment on legal proceedings, company spokesman T.J. Crawford told Bloomberg Law.

Attorneys: Husch Blackwell LLP represents Cigna.

The case is Cigna Corp. v. Bricker, E.D. Mo., No. 23-cv-00093, complaint filed 1/26/23.