A lawsuit was filed on behalf of investors in CVS Health Corporation (NYSE: CVS) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 03/13/2019 -- An investor, who purchased shares of CVS Health Corporation (NYSE: CVS), filed a lawsuit over alleged violations of Federal Securities Laws by CVS Health Corporation.
Investors who purchased shares of CVS Health Corporation (NYSE: CVS) should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
On May 20, 2015, CVS Pharmacy, Inc., a wholly owned subsidiary of CVS Health, entered into an Agreement and Plan of Merger to acquire Omnicare, Inc., a provider of pharmaceuticals and related pharmacy services to long-term care facilities and provider of specialty pharmacy and commercialization services for the bio-pharmaceutical industry (the "Omnicare Acquisition"). According to CVS Health's SEC filings, upon the effective date of the Omnicare Acquisition, each share of common stock, par value $1.00 per share, of Omnicare would be converted into the right to receive $98.00 in cash, or approximately $10.6 billion in the aggregate. In addition, CVS Pharmacy would assume approximately $2.3 billion in debt of Omnicare.
On August 18, 2015, CVS Health acquired 100% of the outstanding common shares and voting interests of Omnicare for $98 per share for a total of $9.6 billion and assumed long-term debt with a fair value of approximately $3.1 billion. Additionally, holders of Omnicare restricted stock units and performance based restricted stock units received 738,765 CVS Health restricted stock awards with a fair value of approximately $80 million as replacement awards. According to CVS Health's SEC filings, the Company acquired Omnicare to expand its operations in dispensing prescription drugs to assisted-living and long-term care facilities, and to broaden its presence in the specialty pharmacy business as it sought to serve a greater percentage of the growing senior patient population in the United States.
Then on February 20, 2019, CVS Health announced the Company's fourth quarter and full year financial and operating results and provided 2019 full year guidance. CVS Health advised investors that adjusted earnings in 2019 would be $6.68 to $6.88 per share, compared with the $7.36 average of market estimates, citing rising costs and poor results related to the Company's 2015 acquisition of Omnicare.
The plaintiff claims that between May 21, 2015 and February 20, 2019, the Defendants made false and/or misleading statements and/or failed to disclose that CVS Health's financial condition and expected earnings were deteriorating as a result of rising costs and poor results associated with the Omnicare Acquisition, and that as a result, CVS Health's public statements were materially false and misleading at all relevant times.
Those who purchased shares of CVS Health Corporation (NYSE: CVS) have certain options and should contact the Shareholders Foundation.
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