Cardinal Health, Inc. (NYSE: CAH) Investor Securities Class Action Lawsuit 08/01/2019

If you purchased a significant amount of shares of Cardinal Health, Inc. (NYSE: CAH) between March 2, 2015 and May 2, 2018, and / or if you purchased any NYSE: CAH shares prior to March 2015 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: September 30, 2019. NYSE: CAH investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Cardinal Health
Case Name: 
Cardinal Health Shareholder Class Action Lawsuit 08/01/2019
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: CAH
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/01/2019
Class Period Begin: 
03/02/2015
Class Period End: 
05/02/2018
Court of Filing: 
U.S. District Court for the Southern District of Ohio
Deadline To File for Lead: 
09/30/2019
Summary: 

An investor in shares of Cardinal Health, Inc. (NYSE: CAH) filed a lawsuit in the U.S. District Court for the Southern District of Ohio over alleged violations of Federal Securities Laws by Cardinal Health, Inc. in connection with certain allegedly false and misleading statements made between March 2, 2015 and May 2, 2018.

Dublin, OH based Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States and internationally.

On August 2, 2017, Cardinal Health, Inc reported its earnings for its fourth quarter and fiscal year 2017 and lowered its earnings guidance for fiscal year 2018 due in part to "higher-than-planned write-offs for excess inventory" at Cordis.

Cardinal Health, Inc assured its investors that Cordis's operational deficiencies had been addressed, that the Company had built the necessary infrastructure and IT systems for Cordis such that it now had "visibility" of Cordis's inventory, and that the Cordis business was "going into a phase of a lot more stability."

Then, on May 3, 2018, Cardinal Health, Inc announced its results for its third quarter fiscal year 2018 and cut its fiscal year 2018 earnings guidance. Cardinal Health, Inc explained that the "biggest variable driving these results" was the "disappointing performance" of the Cordis business. Contrary to the Company's prior statements that it had visibility into Cordis's inventory and that the Company properly reserved for obsolete inventory, the Company revealed that after launching a new global supply chain IT platform over the last quarter at Cordis, it discovered millions of dollars of unsellable and expired heart stents and catheters stationed overseas that had to be written off.

Shares of Cardinal Health, Inc. (NYSE: CAH) declined from $84.88 per share in March 2017 to as low as $42.02 per share in May 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of Cardinal Health, Inc. (NYSE: CAH) common shares between March 2, 2015 and May 2, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 2, 2015 and May 2, 2018, the defendants misled investors by stating that Cordis would benefit from Cardinal's advanced inventory management and supply chain information technology solutions, that Defendants also falsely represented that the Company properly "reserve[d] for inventory obsolescence" and that "[i]nventories presented in the consolidated balance sheets [were] net of reserves for excess and obsolete inventory", and that as a result of these misrepresentations, Cardinal shares traded at artificially inflated prices between March 2, 2015 and May 2, 2018.