CVS Health Corporation (NYSE: CVS) Investor Securities Class Action Lawsuit 02/25/2019

If you purchased a significant amount of shares of CVS Health Corporation (NYSE: CVS) between May 21, 2015 and February 20, 2019, and / or if you purchased any NYSE: CVS shares prior to May 2015 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: April 26, 2019. NYSE: CVS 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): 
CVS Health Corporation
Case Name: 
CVS Health Corporation Shareholder Class Action Lawsuit 02/25/2019
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: CVS
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/25/2019
Class Period Begin: 
05/21/2015
Class Period End: 
02/20/2019
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
04/26/2019
Summary: 

An investor in shares of CVS Health Corporation (NYSE: CVS) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by CVS Health Corporation in connection with certain allegedly false and misleading statements made between May 21, 2015 and February 20, 2019.

Woonsocket, RI based CVS Health Corporation, together with its subsidiaries, provides integrated pharmacy health care services. On May 20, 2015, CVS Pharmacy, Inc., a wholly owned subsidiary of CVS Health, entered into an Agreement and Plan of Merger to acquire Omnicare, Inc., a provider of pharmaceuticals and related pharmacy services to long-term care facilities and provider of specialty pharmacy and commercialization services for the bio-pharmaceutical industry (the “Omnicare Acquisition”). According to CVS Health’s SEC filings, upon the effective date of the Omnicare Acquisition, each share of common stock, par value $1.00 per share, of Omnicare would be converted into the right to receive $98.00 in cash, or approximately $10.6 billion in the aggregate. In addition, CVS Pharmacy would assume approximately $2.3 billion in debt of Omnicare.
On August 18, 2015, CVS Health acquired 100% of the outstanding common shares and voting interests of Omnicare for $98 per share for a total of $9.6 billion and assumed long-term debt with a fair value of approximately $3.1 billion. Additionally, holders of Omnicare restricted stock units and performance based restricted stock units received 738,765 CVS Health restricted stock awards with a fair value of approximately $80 million as replacement awards. According to CVS Health’s SEC filings, the Company acquired Omnicare to expand its operations in dispensing prescription drugs to assisted-living and long-term care facilities, and to broaden its presence in the specialty pharmacy business as it sought to serve a greater percentage of the growing senior patient population in the United States.

Then on February 20, 2019, CVS Health announced the Company’s fourth quarter and full year financial and operating results and provided 2019 full year guidance. CVS Health advised investors that adjusted earnings in 2019 would be $6.68 to $6.88 per share, compared with the $7.36 average of market estimates, citing rising costs and poor results related to the Company’s 2015 acquisition of Omnicare.

According to the complaint the plaintiff alleges on behalf of purchasers of CVS Health Corporation (NYSE: CVS) common shares between May 21, 2015 and February 20, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 21, 2015 and February 20, 2019, the Defendants made false and/or misleading statements and/or failed to disclose that CVS Health’s financial condition and expected earnings were deteriorating as a result of rising costs and poor results associated with the Omnicare Acquisition, and that as a result, CVS Health’s public statements were materially false and misleading at all relevant times.