Coughlin Stoia Geller Rudman & Robbins LLP ("Coughlin Stoia”) (http://www.csgrr.com/cases/cvscaremark/) today announced that a class action has been commenced in the United States District Court for the District of Rhode Island on behalf of purchasers of CVS Caremark Corporation ("CVS” or the "Company”) (NYSE:CVS) common stock during the period between May 5, 2009 and November 4, 2009, inclusive (the "Class Period”), for violations of the Securities Exchange Act of 1934 (the "Exchange Act”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff''s counsel, Samuel H. Rudman or David A. Rosenfeld of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this Class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/cvscaremark/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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.
Plaintiff seeks to recover damages on behalf of all purchasers of CVS common stock during the Class Period (the "Class”). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.
Contacts:
Coughlin Stoia Geller Rudman & Robbins LLP
Samuel H. Rudman,
800-449-4900
David A. Rosenfeld
djr@csgrr.com
