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Case Status:    SETTLED
On or around 01/27/2016 (Ongoing date of last review)

Filing Date: November 18, 2009

According to a press release dated November 17, 2009, the complaint charges CVS and certain of its officers and directors with violations of the Exchange Act. CVS, since its March 2007 $22 billion acquisition of pharmacy benefits manager Caremark Rx Inc. (“Caremark”), is a fully integrated pharmacy services company and operates in two business segments: pharmacy services and retail pharmacy. The pharmacy services business includes CVS’s pharmacy benefit management business, commonly known as the PBM business, which was acquired in the Caremark acquisition in 2007. The PBM business is the principal component of the pharmacy services business segment.

The complaint alleges that, throughout the Class Period, defendants made numerous positive statements regarding the Company’s financial condition, business and prospects. The complaint further alleges that CVS failed to disclose operating problems in the PBM business, the more than $6 billion in contractual losses for 2010 and the adverse impact this would have on its 2010 financial results. According to the complaint, CVS belatedly disclosed that the Federal Trade Commission (“FTC”) had begun a “nonpublic investigation” in August 2009 into whether CVS’s business practices and service offerings violated antitrust laws. Among the business practices of CVS that the FTC is reportedly investigating is the improper use of pricing and patient data from its retail pharmacy operations to steer its PBM members to CVS stores.

On November 5, 2009, CVS issued a press release announcing the disclosures of the adverse material facts concerning the PBM business and their adverse impact on CVS's financial results for 2010, and the FTC investigation. In response to this press release, the price of CVS common stock fell 20% to close at $28.87.

On March 01, 2010, an order granting the plaintiffs Motion to Appoint Lead Plaintiff and Approving Selection of Law and Liaison Counsel was entered into the Court’s record.

On May 03, 2010, an Amended Complaint / Consolidated Class Action Complaint was filed by the lead plaintiffs against the defendants.

On June 01, 2010, an Amended Complaint / Corrected Consolidated Class Action Complaint was filed by the lead plaintiffs against the defendants.

On June 14, 2012, the Court issued an Order granting defendants' motion to dismiss. The clerk was directed to enter judgment accordingly and close this case.

On May 24, 2013, the United States Court of Appeals For the First Circuit issued a ruling on appeal, vacating the district court's dismissal and remanding for further proceedings.

On December 30, 2013, the Court issued an Order denying the defendants' motion to dismiss.

On August 24, 2015, the parties entered into a Stipulation of Settlement.

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. Rhode Island
DOCKET #: 09-CV-00554
JUDGE: Hon. William E Smith
DATE FILED: 11/18/2009
CLASS PERIOD START: 05/05/2009
CLASS PERIOD END: 11/04/2009
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@csgrr.com/
  2. Law Offices of Bernard M. Gross (Philadelphia)
    John Wanamaker Building; 100 Penn Square East, Suite 450, Law Offices of Bernard M. Gross (Philadelphia), PA 19107
    215.561.3600 215.561.3600 · susang@bernardmgross.com
No Document Title Filing Date
COURT: D. Rhode Island
DOCKET #: 09-CV-00554
JUDGE: Hon. William E Smith
DATE FILED: 05/03/2010
CLASS PERIOD START: 10/30/2008
CLASS PERIOD END: 11/05/2009
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barry J. Kusinitz
    155 South Main St., Suite 405 , Barry J. Kusinitz, RI 02903
    401.831.4200 401/831-7053 ·
  2. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
  3. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
No Document Title Filing Date