Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of all former Aetna Inc. shareholders who acquired CVS Health Corporation (NYSE:CVS) shares in exchange for their Aetna shares in connection with CVSs acquisition of Aetna on November 28, 2018. The lawsuit seeks to recover damages for CVS investors under the federal securities laws.
To join the CVS class action, go to https://www.rosenlegal.com/cases-register-1674.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] or [email protected] for information on the class action.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY RETAIN COUNSEL OF YOUR CHOICE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. AN INVESTORS ABILITY TO SHARE IN ANY POTENTIAL FUTURE RECOVERY IS NOT DEPENDENT UPON SERVING AS LEAD PLAINTIFF.
According to the lawsuit, defendants throughout the Class Period 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, Inc.; (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 with Aetna.; (3) although negative LTC performance factors prompted 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 Generally Accepted Accounting Principles; (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 CVS publicly represented. When the true details entered the market, the lawsuit claims that investors suffered damage.
A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than October 14, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, go to https://www.rosenlegal.com/cases-register-1674.html or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. of Rosen Law Firm toll free at 866-767-3653 or via e-mail at [email protected] or [email protected].
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has secured hundreds of millions of dollars for investors.
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
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