An investor in NASDAQ:ESRX shares filed a lawsuit in effort to get access to the company’s books and records related to the contract between Express Scripts Holding Company and Anthem.
Investors who are current long term investors in Express Scripts Holding Company (NASDAQ:ESRX) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
Express Scripts Holding Company’s most important client is Anthem, Inc. (“Anthem”), one of the largest health benefits companies in the United States, which represents approximately 14% of Express Scripts Holding Company’s annual revenues. Pursuant to Express Scripts Holding Company’s contract with Anthem, Anthem may periodically conduct a market analysis to ensure that Anthem is receiving “competitive benchmark pricing” on drugs purchased through plans administered by Express Scripts Holding Company. If Anthem determines that the pricing terms under the agreement with Express Scripts Holding Company are no longer market competitive, then Anthem may propose new pricing terms to ensure that Anthem is receiving competitive benchmark pricing, and Express Scripts Holding Company is obligated to negotiate in good faith over the proposed new pricing terms.
On January 12, 2016, Anthem publicly threatened to terminate its relationship with Express Scripts Holding Company unless Express Scripts Holding Company would renegotiate its agreement with Anthem to deliver more than $3 billion in annual savings to Anthem.
Then, on March 21, 2016, Anthem sued Express Scripts Holding Company alleging that Express Scripts Holding Company breached its contract with Anthem by failing to negotiate drug pricing terms in good faith. The plaintiff says that that lawsuit revealed a conflict between Express Scripts Holding Company and Anthem dating back to at least February 2015, including allegations that Express Scripts Holding Company was experiencing severe operational problems that interfered with its ability to adequately serve Anthem and exposed Anthem to increased regulatory scrutiny and that investors learned that Anthem would almost certainly either renegotiate its contract to pay billions of dollars less to Express Scripts Holding Company, or worse, seek to engage a competing PBM resulting in the complete loss of Anthem’s business.
The investor seeks access to the company’s books and records of the contract between Express Scripts and Anthem. The plaintiff says that it appears from the Anthem complaint that Express Scripts was in serious breach of its contract with its most important and largest customer and had been for at least a year. The plaintiff served a demand on the board of directors of Express Scripts Holding Company for its books and records but he has not received any documents from the company and was therefore forced to file a lawsuit to gain access to the books and records of the contract between Express Scripts and Anthem.
Those who purchased NASDAQ:ESRX shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
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