On December 5, 2024, KLF’s clients, the Southeastern Pennsylvania Transportation Authority (“SEPTA”) and the City of Miami Firefighters’ and Police Officers’ Retirement Trust (“Miami”), along with another public pension fund, were appointed co-lead plaintiffs in the securities class action against CVS Health Corporation (“CVS”).
The class action lawsuit is pending in the United States District Court for the Southern District of New York before the Honorable Judge Margaret M. Garnett.
The lawsuit alleges that between February 9, 2022, and April 30, 2024, CVS made false and misleading statements regarding its efforts to reduce overall healthcare costs and its expectations for continued growth in Medicare and Commercial membership.
The lead plaintiffs, SEPTA and Miami, plan to file a consolidated amended complaint in the coming months.
The Complaint alleges that 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.
Questions About the CVS Securities Class Action Lawsuit?
CVS investors with questions about the class action lawsuit are encouraged to send us a message or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected].
About Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side class action law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm, P.C. have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion on behalf of institutional and individual investors.
Kehoe Law Firm’s legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.
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