According to the Complaint, Covetrus is a global, technology-enabled Animal Health Business that touts a comprehensive service and technology platform and supply chain infrastructure for the veterinary markets. Covetrus was formed when Henry Schein, Inc, a large publicly traded health care company, spun-off its Animal Health Business and combined it with VFC, a private technology company focused on veterinary markets.

The Complaint alleges that during the Class Period, Defendants issued a series of false and/or misleading statements and failed to disclose material adverse facts about Covetrus’ business, operations, and prospects. Specifically, the Complaint alleges Defendants’ representations to investors: (i) overstated Covetrus’ capabilities with regard to inventory management and supply chain services; (ii) understated the costs of the integration of Henry Schein’s Animal Health Business and VFC, including the timing and nature of those costs; (iii) understated Covetrus’ separation costs from Henry Schein; and (iv) understated the impact on earnings from online competition and alternative distribution channels as well as the impact of the loss of a large customer in North America just prior to the Company’s separation from Henry Schein.

On December 23, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on February 21, 2020. On May 21, Lead Plaintiff filed an amended consolidated Complaint. Defendants filed a Motion to Dismiss the amended consolidated Complaint on October 21. On August 3, 2021, the Court issued an Order granting Defendants' Motion to Dismiss. The case against the Company Issuer was dismissed with prejudice.

On May 9, 2022, Lead Plaintiffs entered into a Stipulation and Agreement of Settlement with Covetrus, Inc. and one of the individual Defendants. On July 15, the Court adopted the report and recommendations made by the Magistrate Judge and granted preliminary approval of the Settlement. On October 25, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

The Court issued an Order authorizing disbursement of the Settlement funds.