Investors who sold the rumor bought the news Friday when

Cigna

(CI) - Get Report

said it would take a $315 million charge to cover reinsurance obligations after an arbitration panel ruled against it.

The shares were up about $2.90 to $63.29 Friday to after falling more than $3 to $60.39 on heavy volume Thursday, when rumors of the decision began to circulate.

Cigna argued before the arbitrator that it shouldn't be liable for some of the reinsurance claims stemming its participation in Unicover Managers. Cigna's own reinsurance operations were discontinued in 2000.

The charge also covers reinsurance contracts assumed by Cigna in the London market.