Levi & Korsinsky Announces CVS Health Corporation Class Action Investigation; CVS Lawsuit

Class Action Reports

Levi & Korsinsky Announces CVS Health Corporation Class Action Investigation; CVS Lawsuit

Levi & Korsinsky, LLP

September 24, 2019

Levi & Korsinsky, LLP announces that a CVS class action lawsuit has been commenced on behalf of all former Aetna Inc. shareholders who acquired CVS Health Corporation (CVS) shares in exchange for their Aetna shares in connection with CVS’s acquisition of Aetna on November 28, 2018. For more on the CVS Health Corporation Class Action please contact us today.

According to the CVS Health Corporation lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) by the end of 2017, CVS’s financial condition and expected earnings had deteriorated as a result of rising costs and poor results being experienced in the long-term care (“LTC”) unit associated with the 2015 acquisition of Omnicare; (2) in 2017, deteriorating conditions and prospects in CVS ‘s LTC unit prompted CVS to undertake hasty acquisitions of LTC pharmacies to compensate for the declining LTC business and/or mask the expected LTC goodwill impairment ahead of the planned Acquisition; (3) although negative LTC performance factors prompted CVS and the CVS Individual Defendants to make hasty LTC pharmacy acquisitions in 2017, those same negative factors were being overlooked and ignored for purposes of undertaking, disclosing, and reporting the results of LTC goodwill impairment tests throughout 2017, in violation of GAAP; (4) the LTC goodwill being carried on CVS’s books as a result of the Omnicare acquisition was being carried at inflated values that would require billions of dollars in impairment charges that would be charged against earnings; and (5) as a result of the foregoing, CVS’s true business metrics and financial prospects were not as the Offering Documents represented.

TO LEARN MORE ABOUT THE CVS CLASS ACTION, VISIT: https://www.zlk.com/pslra-1/cvs-health-corporation-loss-form-2?prid=3546&wire=1

If you suffered a loss in CVS Health Corporation you have until October 15, 2019 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.

Levi & Korsinsky is a national firm with offices in New York, California, Connecticut, and Washington D.C. The firm’s attorneys have extensive expertise and experience representing investors in securities litigation and have recovered hundreds of millions of dollars for aggrieved shareholders. Attorney advertising. Prior results do not guarantee similar outcomes.

 

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

55 Broadway, 10th Floor

New York, NY 10006

jlevi@levikorsinsky.com

Tel: (212) 363-7500

Fax: (212) 363-7171

www.zlk.com