Robbins LLP is Investigating Allegations that CVS Health Corporation (CVS) Misled Investors Regarding its Business Prospects

Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired CVS Health Corporation (NYSE: CVS) securities between May 3, 2023 and April 30, 2024. CVS is a healthcare company. 

The Allegations

The complaint alleges that during the class period defendants made false and/or misleading statements and/or failed to disclose that: (i) the forecasts CVS used to determine plan premiums were ineffective at accounting for medical cost trends and health care utilization patterns; (ii) as a result, CVS was likely to incur significant expenses to cover cost increases that were not accounted for in the Company’s forecasts and thus not covered by plan premiums; (iii) accordingly, CVS had overstated the profitability of its Health Care Benefits segment; (iv) contrary to defendants’ assurances, the revenues generated from the Company’s other primary segments were insufficient to offset the negative financial impact of the increasing expenditures within the Health Care Benefits segment; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times. When the truth was revealed, the Company's stock declined, harming investors.

What Now: You may be eligible to participate in the class action against CVS Health Corporation. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by September 10, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.