ACE Sues Cigna for Breach of Contract, Seeks $218 Million

ACE Ltd.(ACL Quote) filed a breach of contract lawsuit against Cigna(CI Quote) that stems from its acquisition of Cigna's property and casualty business last year.

According to ACE, Cigna misrepresented the financial condition of the acquired businesses and has withheld $48 million that the company should receive under the tax-sharing agreement in the acquisition pact. ACE is seeking compensatory damages of about $218 million.

ACE, which is based in Hamilton, Bermuda, acquired Cigna's property and casualty business for $3.45 billion on July, 2, 1999. ACE filed the suit in the U.S. District Court for the Southern District of New York and is seeking a jury trial. ...