Updated: March 22, 2019
Status: Ongoing Case
Labaton Sucharow LLP is currently litigating in New York state court a securities class action against CVS Health Corporation (“CVS”) concerning certain false and misleading statements made in connection with CVS’s acquisition of and merger with Aetna Inc.
On March 22, 2019, Labaton Sucharow filed a complaint for violation of the Securities Act of 1933 (the “Complaint”). The Complaint alleges that the registration statement issued in connection with the merger contained four categories of misleading statements and omissions, including: (1) CVS’s goodwill; (2) CVS’s loss of clients and inability to win new business; (3) solvency of CVS’s customers; and (4) integration and success of prior CVS acquisitions.
On March 21, 2019, the day before the Complaint was filed, CVS’s common stock closed at a price of $57.40, approximately 28% lower than the price of the common stock when the merger closed.
The case is Labourers’ Pension Fund of Central and Eastern Canada v. CVS Health Corporation, Index No. 651700/2019, in the Supreme Court of the State of New York, County of New York. Labaton Sucharow represents plaintiff Labourers’ Pension Fund of Central and Eastern Canada. The defendants are CVS and certain of its officers and directors.