A CVS store
A former Cigna executive is now free to assume a new position with CVS Health after the two companies reached a settlement over an alleged noncompete agreement violation.
Amy Bricker accepted a position as executive vice president and chief product officer –consumer for CVS in January 2023. She previously had served as president of Express Scripts, which is Cigna’s pharmacy benefit manager. But before she started her new job that February, Cigna filed a lawsuit alleging that the move would put its trade secrets at risk.
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In its complaint, Cigna said CVS hired Bricker in a “desperate effort” to retaliate against Cigna for securing a contract previous managed by CVS, which it said would result in a $2 billion decline in CVS’s 2024 revenue. It further alleged that Bricker received a high six-figure bonus as a result of her contribution to the contract and was “privy to the business’s most highly sensitive information,” including supply chain, product development and sales strategies.
The complaint was filed shortly before the Federal Trade Commission proposed a ban on noncompete clauses in employment contracts to keep workers from switching jobs. The agency later issued a final rule banning employers from entering into, enforcing or attempting to enforce post-employment noncompete clauses with employees, subject to limited exceptions, and invalidating all existing noncompetes, with a narrow exception for some senior executives.
CVS countered that the noncompete clause was unenforceable because it was overly broad and anticompetitive, adding that Bricker’s new position was not similar to the one she left. A federal judge in 2023 issued a preliminary injunction preventing her from providing services to CVS Pharmacy, CVS Health, any of its entities or any other business that is “engaged in a business similar to or that competes with the business of Cigna.” The injunction also prevented her from disclosing Cigna trade secrets or confidential information.
The two parties reached a settlement ahead of a mediation hearing that was set for May 30. The terms of the agreement were not disclosed, and neither CVS nor Cigna has commented on the terms.
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Alan Goforth
Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.
