Two shareholders of Louisville, Ky.-based Humana have filed a lawsuit to stop Aetna's purchase of Humana, claiming the acquisition isn't a good deal for shareholders, according to The Courier-Journal.
One shareholder, John Solak, contended the acquisition "greatly undervalues Humana."
The suit claimed the Affordable Care Act "has been a boon to Humana, as its stock price has nearly quadrupled since the act was signed into law," but the acquisition will make shareholders accept a "grossly inadequate" price as holders in the new company.
Humana shareholders were originally going to receive .8375 share of Aetna stock and $125 in cash, or about $230 per share based on Aetna's closing stock price. But they could only receive $220 per share now that Aetna's shares of stock closed at $113 Oct. 13.
Mr. Solak's suit also claimed the deal offers executives — like Humana CEO Bruce Broussard — multi-million dollar severance packages to get them to support the proposed acquisition.
Another suit, which cited similar concerns, was filed by Harold Litwin and merged in Jefferson Circuit Court with Mr. Solak's action.
Due to the litigation, Humana and Aetna had to disclose financial information and details in an 8K document filed with the SEC.
Similar shareholder suits are not uncommon, according to The Courier-Journal. In July, shareholder Maureen Scott filed a lawsuit claiming the acquisition undervalues Humana and underestimates the antitrust hurdles ahead.