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Case Status:    SETTLED
On or around 09/08/2005 (Date of order of final judgment)

Filing Date: August 22, 2001

By the Order and Final Judgment, signed by U.S. District Judge Joseph L. Tauro on September 7, 2005, the Court hereby approves the settlement set forth in the Securities Stipulation. The Court hereby dismisses the Securities Action with prejudice and without costs (except as otherwise provided in the Securities Stipulation). The Plan of Allocation is approved, and Plaintiffs' Counsel are hereby awarded 25% of the Settlement Fund in attorneys’ fees and $2,472,092.30 in reimbursement of expenses.

In a press release dated, June 7, 2005, CVS Corp. has agreed to pay
$110 million to shareholders to settle a lawsuit that claimed the company violated federal securities laws by making false and misleading statements to artificially inflate stock prices, according to a proposal filed yesterday in US District Court in Boston. The lawsuit alleges that CVS, the largest chain pharmacy by number of stores, violated accounting practices by delaying discounts on merchandise in an effort to prop up earnings.

According to the docket posted, on February 13, 2002, the Court entered the Order signed by U.S. District Judge Joseph L. Tauro granting the motion to consolidate the cases, and to appoint lead plaintiffs and approve selection of lead counsel and liaison counsel. On April 8, 2002, the plaintiffs filed an amended complaint, and the defendants responded by filing a motion to dismiss on June 7, 2002. On December 18, 2002, the Court entered the Order denying the motion to dismiss the consolidated and amended class action complaint. On January 14, 2005, the defendants filed a motion for Summary Judgment, which Judge Joseph L. Tauro denied in an Order entered on March 9, 2005. On June 6, 2005, a Stipulation and Agreement of Compromise, Settlement and Release of Securities Class Action was filed by the Lead Plaintiffs.

The original Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between February 6, 2001 and June 27, 2001, thereby artificially inflating the price of CVS securities. The complaint alleges that, throughout the Class Period, CVS issued positive statements concerning its business and operations which failed to disclose, among other things, that the Company was unable to successfully address the national shortage of pharmacists and that this shortage was negatively impacting CVS's business and that the Company's expansion plans would have to be scaled back in light of the difficulties facing the Company. When this information became publicly known on June 27, 2001, the price of CVS common stock dropped sharply, falling from $44.10 per share to $36.51 per share on extremely heavy trading volume. During the Class Period, CVS insiders were able to dispose of shares of their personally-held stock for gross proceeds in excess of $8 million and CVS was able to raise $300 million through the issuance of notes on highly favorable terms.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Drugs)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CVS
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Massachusetts
DOCKET #: 01-CV-11464
JUDGE: Hon. Joseph L. Tauro
DATE FILED: 08/22/2001
CLASS PERIOD START: 02/06/2001
CLASS PERIOD END: 06/27/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Bull & Lifshitz
    18 East 41st St., Bull & Lifshitz, NY 10017
    212.213.6222 212.213.9405 ·
  3. Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA)
    225 Broadway, Suite 1900, Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA), CA 92010
    619.702.7350 619.702.7351 ·
  4. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 · Nfaruqi@faruqilaw.com
  5. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  6. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  7. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  8. Moulton & Gans LLP
    133 Federal Street, Moulton & Gans LLP, MA 2110
    617.369.7979 ·
  9. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  10. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 01-CV-11464
JUDGE: Hon. Joseph L. Tauro
DATE FILED: 04/08/2002
CLASS PERIOD START: 02/06/2001
CLASS PERIOD END: 10/30/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  2. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  3. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
No Document Title Filing Date