CVS Caremark Corp.
Class Period: Oct 30, 2008 to Nov 4, 2009
Lead Plaintiff Deadline: Jan 18, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against CVS Caremark Corp. (CVS) ("CVS" or the "Company") on behalf of all securities purchasers from May 5, 2009 through November 4, 2009, inclusive ("Class Period"), in the United States District Court of Rhode Island.
The complaint alleges that throughout the Class Period, defendants made numerous positive statements regarding CVS's financial condition, business and prospects. Furthermore, CVS failed to disclose operating problems in the PBM business, the more than $6 billion in contractual losses for 2010 and the adverse impact this would have on its 2010 financial results. According to the complaint, CVS belatedly disclosed that the Federal Trade Commission ("FTC") had begun a "nonpublic investigation" in August 2009 into whether CVS's business practices and service offerings violated antitrust laws. Among the business practices of CVS that the FTC is reportedly investigating is the improper use of pricing and patient data from its retail pharmacy operations to steer its PBM members to CVS stores.
On November 5, 2009, CVS issued a press release announcing the disclosures of the adverse material facts concerning the PBM business and their adverse impact on CVS's financial results for 2010, and the FTC investigation. In response to this press release, the price of CVS common stock fell 20% to close at $28.87.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.