WellPoint (WLP) May Seek Litigation in Disagreement w/ Express Scripts (ESRX)
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Express Scripts, Inc. (Nasdaq: ESRX) and its client WellPoint, Inc. (NYSE: WLP) are involved in a contractual dispute regarding certain terms of the Pharmacy Benefits Management Agreement entered into by the parties on December 1, 2009.
The dispute, raised by WellPoint, relates to the contractual interpretation of certain terms in the PBM agreement and certain operational matters associated with Express Scripts’ performance thereunder. Although WellPoint has raised the possibility of litigation to resolve these matters, the parties have been seeking to settle these matters through discussions, and Express Scripts believes that the parties will be able to resolve these matters satisfactorily.
However, Express Scripts cannot provide any assurance that such matters will be settled without litigation. Furthermore, while it is not possible to determine the ultimate outcome of the matters in dispute, Express Scripts does not expect the resolution of these disputed matters, in the aggregate, to have a material adverse effect on Express Scripts’ financial condition, consolidated results of operations, cash flows or business, although there can be no assurance in this regard.
The dispute, raised by WellPoint, relates to the contractual interpretation of certain terms in the PBM agreement and certain operational matters associated with Express Scripts’ performance thereunder. Although WellPoint has raised the possibility of litigation to resolve these matters, the parties have been seeking to settle these matters through discussions, and Express Scripts believes that the parties will be able to resolve these matters satisfactorily.
However, Express Scripts cannot provide any assurance that such matters will be settled without litigation. Furthermore, while it is not possible to determine the ultimate outcome of the matters in dispute, Express Scripts does not expect the resolution of these disputed matters, in the aggregate, to have a material adverse effect on Express Scripts’ financial condition, consolidated results of operations, cash flows or business, although there can be no assurance in this regard.
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