CVS Health (CVS) Financial Misrepresentation Case

S.D. New York

Court

1:24-cv-05303

Case number

05/03/2023

Class period Start

04/30/2024

Class period End

09/10/2024

Lead Plaintiff motion deadline

$CVS stockholder filed a claim against CVS Health for overstating profits from its Health Care Benefits segment.
After disappointing financial results, $CVS fell by 2.73% on August 3, 2023.
CVS Health investors can join this case to be notified about potential recovery.
Case Details:

On August 2, 2023, CVS announced its quarterly results and lowered its expected earnings per share to $6.53-$6.75 from $6.90-$7.12.

On the same day, in a quarterly report to the SEC, CVS reported a 30.7% drop in operating income, down $1.4B, mainly due to declines in its Health Care Benefits segment. 

On this news, $CVS fell by 2.73% on August 3, 2023.

Based on these events, a $CVS stockholder filed a claim against CVS Health and its leaders, accusing them of the following:
CVS's forecasts didn't account for rising medical costs and usage patterns.
This led to unexpected expenses, overstating the Health Care Benefits segment's profitability.
Other revenue streams couldn't offset the increased costs in the Health Care Benefits segment.
Considering all the representations, investors have reasons to suspect that CVS Health overstated profits from its Health Care Benefits segment.

Case Status

Lead Plaintiff Submission

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

08/03/2023

Filing date

07/12/2024

Lead Plaintiff Deadline

09/10/2024

CVS Health (CVS) Financial Misrepresentation Case

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