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Judge dismisses shareholder lawsuit against Express Scripts

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Judge dismisses shareholder lawsuit against Express Scripts

A U.S. District judge dismissed a suit against Express Scripts Holding Co. where its shareholders alleged it increased its stock price by concealing a troubled relationship with its largest customer Anthem Inc., Reuters reported Aug. 2.

The judge ruled that the shareholders failed to show that the company had the intention of defrauding them or that it made false or misleading statements in this regard.

The Teachers Insurance & Annuity Association of America was the lead plaintiff in the lawsuit which also implicated the company's CEO Tim Wentworth and his predecessor and current chairman George Paz.

According to Reuters, the suit alleged that the "extremely contentious" relationship only came to light in March 2016 when Anthem sued the company for $15 billion and sought the right to end the 10-year contract claiming it was being overcharged $3 billion annually.

Earlier this year, Express Scripts said Anthem was unlikely to renew its contract. The company also recently noted that any new contract is likely to contain less favorable terms.