CVS Health Corporation Class Acton Lawsuit - CVS
Case Summary
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The CVS class action lawsuit seeks to represent purchasers or acquirers of CVS Health Corporation (NYSE: CVS) securities between May 3, 2023 and April 30, 2024, inclusive (the “Class Period”). Captioned Nixon v. CVS Health Corporation, No. 24-cv-05303 (S.D.N.Y.), the CVS class action lawsuit charges CVS and certain of CVS’s top current and former executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the CVS class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the CVS class action lawsuit must be filed with the court no later than September 10, 2024.
CASE ALLEGATIONS: CVS is a healthcare company.
The CVS class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) the forecasts CVS used to determine plan premiums were ineffective at accounting for medical cost trends and health care utilization patterns; (ii) as a result, CVS was likely to incur significant expenses to cover cost increases that were not accounted for in CVS’s forecasts and thus not covered by plan premiums; (iii) accordingly, CVS had overstated the profitability of its Health Care Benefits segment; and (iv) contrary to defendants’ assurances, the revenues generated from CVS’s other primary segments were insufficient to offset the negative financial impact of the increasing expenditures within the Health Care Benefits segment.
The CVS class action lawsuit further alleges that on August 2, 2023, CVS revealed that it was revising its diluted earnings-per-share (“EPS”) guidance range to $6.53 to $6.75 from $6.90 to $7.12 and that operating income “decreased $1.4 billion, or 30.7%, in the three months ended June 30, 2023 compared to the prior year primarily due to declines in the Health Care Benefits segment.” On this news, the price of CVS stock fell, according to the complaint.
The complaint further alleges that on February 7, 2024, CVS revealed that it was revising its diluted EPS guidance range to at least $7.06 from at least $7.26, its adjusted EPS guidance range to at least $8.30 from at least $8.50, and its cash flow from operations guidance to at least $12.0 billion from at least $12.5 billion. On this news, the price of CVS stock fell, according to the complaint.
Finally, on May 1, 2024, the CVS class action lawsuit alleges that CVS reported $88.4 billion in revenue, missing expectations of $89 billion, stating that higher utilization of healthcare services, meaning more insurance dollars spent, weighed on its results in addition to Medicare reimbursement rate cuts that will continue to pressure CVS for the remainder of the year. On this news, the price of CVS stock fell nearly 17%, according to the complaint.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired CVS securities during the Class Period to seek appointment as lead plaintiff in the CVS class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the CVS class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the CVS class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the CVS class action lawsuit.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. Over the last decade, our Firm has been ranked #1 on the ISS Securities Class Action Services law firm rankings for six out of the last ten years for securing the most monetary relief for investors. In the last four years, Robbins Geller recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm during that time. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.