CHNG - Change Healthcare plunges on report of potential U.S. lawsuit to block UnitedHealth deal
Change Healthcare (NASDAQ:CHNG) dropped 9% in premarket trading on a report from last night that the U.S. Dept. of Justice is considering a lawsuit to block the company's $8B sale to UnitedHealth (NYSE:UNH). The DOJ recently contacted private attorneys outside of the regulator about the possibility of litigation to stop the "vertical" transaction, according to a The Information report, which cited people familiar. The DOJ is evaluating whether UNH may have incentive to block or restrict access of competing insurers to Change Healthcare. Several state attorney generals also have issues with the combination, according to the report. Recently the antitrust regulatory has been seeking sworn testimony from potential witnesses in a trial. In late March the companies disclosed that they received a so-called "second request" from the DOJ, meaning the regulator is further scrutinizing the deal. The companies have said they expect the deal to close in 2nd half of this year. The potential lawsuit comes as the
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Change Healthcare plunges on report of potential U.S. lawsuit to block UnitedHealth deal