LOS ANGELES, Aug. 3 (UPI) -- California's insurance commissioner was sued Tuesday for rejecting the proposed acquisition of insurance giant WellPoint Health Networks by rival Anthem.
Anthem's suit filed in Los Angeles County Superior Court alleges Commissioner John Garamendi violated his authority by blocking the merger. The legal action seeks an injunction allowing the $16 billion deal to be completed.
Anthem's chief legal officer, David Frick, said the two companies have met all legal requirements for a merger and had planned to invest $450 million over 20 years in "underserved California communities."
Garamendi repeated in a statement late Tuesday his contention the merger would drain resources from the new company's California operations in order to enrich stockholders and corporate executives.
