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Securities

Jun. 19, 2024

Former Ontrak legal chief tells court Cigna contract termination was unexpected

Ontrak founder Terren Peizer, on trial for securities fraud, has claimed he had no reason to believe Cigna was terminating its contract with them and the reveal came as a "shock" to the entire company.

LOS ANGELES - A fiery exchange between a U.S. attorney and a former in-house lawyer for Ontrak Inc. ensued during a cross-examination Tuesday over the integrity of advice that purportedly gave the company's founder and former CEO enough legal assurance to sell his share of the company prior to a public announcement of the loss of its biggest health insurance client.

It took place on day eight of Terren Peizer's trial on securities fraud charges over allegations he used mat...

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