Anthem, Insurers Spar Over Consulting Right in US Medicare Probe

Attorneys for Anthem Inc. and two of its acquired insurers clashed Wednesday in Delaware Chancery Court over whether Anthem breached their merger agreement by not consulting the insurers about a federal probe into Medicare billing.

The plaintiffs, Shareholder Representative Services LLC and LPPAS Representative LLC, are asking the court to declare that Anthem breached a “participation right” in the agreement and award fees. The request is part of a broader lawsuit claiming Anthem wrongly withheld eight-figure merger payments from the founders of the two insurers.

“Isn’t the participation right more important when the parties’ interests are not aligned?” Chancellor ...