A lawsuit was filed on behalf of investors in Covetrus, Inc. (NASDAQ: CVET) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 10/14/2019 -- An investor, who purchased shares of Covetrus, Inc. (NASDAQ: CVET), filed a lawsuit over alleged violations of Federal Securities Laws by Covetrus, Inc..
Investors in shares of Covetrus, Inc. (NASDAQ: CVET) have certain options and for certain investors are short and strict deadlines running. Deadline: November 29, 2019. NASDAQ: CVET investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Portland, ME based Covetrus, Inc. operates as an animal-health technology and services company. It operates through two segments, Supply Chain, and Technology and Value-Added Services. Covetrus, Inc was formed through a spin-off and merger of the Animal Health Business of Henry Schein with Vets First Choice ("VFC"), a privately-held company, to create what the Company described to investors as the "only global animal health technology and services company."
On August 13, 2019, before the market opened, Covetrus, Inc shocked investors by reporting a net loss of $0.09 per share for the second quarter of 2019 compared to consensus analyst estimates of $0.17 in net income per share. Covetrus, Inc also slashed its 2019 EBITDA guidance to just $200 million, down substantially from its prior EBITDA guidance of approximately $250 million issued in February and May 2019, only a few months prior. In doing so, The plaintiff says Covetrus, Inc admitted that itwould have to spend tens of millions of dollars more in infrastructure spending and redundant costs, and that Covetrus, Inc also admitted previously undisclosed difficulties integrating the platforms and disclosed increased spending to eliminate obligations to Henry Schein as part of the spin-off agreement.
The plaintiff claims that between February 8, 2019 and August 12, 2019, the Defendants' representations to investors overstated Covetrus' capabilities with regard to inventory management and supply chain services, understated the costs of the integration of Henry Schein's Animal Health Business and VFC, including the timing and nature of those costs, understated Covetrus' separation costs from Henry Schein, and 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.
Those who purchased shares of Covetrus, Inc. (NASDAQ: CVET) have certain options and should contact the Shareholders Foundation.
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