| COMPANY |
CVS Health Corporation |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
24-cv-05303 |
| JUDGE |
The Hon. Margaret M. Garnett |
| CLASS PERIOD |
May 3, 2023, through April 30, 2024 |
| SECURITY TYPE |
Securities |
Case Background:
This is a class action on behalf of persons or entities who purchased or otherwise acquired CVS Health Corporation securities from May 3, 2023 through April 30, 2024, inclusive (the “Class Period”).
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the forecasts CVS used to determine plan premiums were ineffective at accounting for medical cost trends and health care utilization patterns; (2) as a result, CVS was likely to incur significant expenses to cover cost increases that were not accounted for in the company’s forecasts and thus not covered by plan premiums; (3) accordingly, CVS had overstated the profitability of its Health Care Benefits segment; (4) contrary to Defendants’ assurances, the revenues generated from the company’s other primary segments were insufficient to offset the negative financial impact of the increasing expenditures within the Health Care Benefits segment; and (5) as a result, the company’s public statements were materially false and misleading at all relevant times.
Current Status of Case:
On December 5, 2024, the Court entered an Opinion and Order Appointing Lead Plaintiffs, Lead Counsels, and Consolidating Cases. This action is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.