CVS Caremark Corporation hit by shareholder lawsuit

PRLog (Press Release) - Nov 19, 2009 -
An investor in CVS Caremark Corporation has filed a lawsuit in the United States District Court for the District of Rhode Island on behalf of purchasers of CVS Caremark Corporation (NYSE:CVS) common stock during the period between May 5, 2009 and November 4, 2009, against CVS Caremark  and others over alleged violations of Federal Securities Laws.

If you purchased CVS Caremark Corporation (NYSE:CVS) common stock during the period between May 5, 2009 and November 4, 2009, you have certain options and there are strict and short deadlines running. Deadline: January 15, 2010. Those CVS shareholders and current long term CVS investors should contact the Shareholders Foundation, Inc at:

Email: mail@shareholdersfoundation.com  or at: +1 (858) 779 – 1554

According to the complaint the plaintiff alleges that CVS Caremark Corporation and certain of its officers and directors violated  the Securities Exchange Act of 1934 by issuing between May 5, 2009 and November 4, 2009 numerous positive statements regarding CVS Caremark’s financial condition, business and prospects and failing to disclose operating problems in the PBM business, the more than $6 billion in contractual losses for 2010 and the adverse impact this would have on its 2010 financial results. According to the complaint,  CVS Caremark Corporation disclosed that the Federal Trade Commission (“FTC”) had begun a “nonpublic investigation” in August 2009 into whether CVS Caremark Corporation’s business practices and service offerings violated antitrust laws. Among the business practices of CVS Caremark Corporation that the FTC is reportedly investigating is the improper use of pricing and patient data from its retail pharmacy operations to steer its PBM members to CVS stores, so the lawsuit.  Then on November 5, 2009, CVS Caremark Corporation issued a press release announcing the disclosures of the adverse material facts concerning the PBM business and their adverse impact on CVS Caremark's financial results for 2010, and the FTC investigation. In response to this press release, the price of CVS common stock fell 20% to close at $28.87.
CVS Caremark Corp, located in Woonsocket, RI, is a provider of prescriptions and related healthcare services in the United States. It is a pharmacy services company and drives value for its customers through its approximately 6,900 CVS/pharmacy and Longs Drug retail stores. CVS Caremark Corporation with a Market Cap of $42.94billion reported in 2007 Total Revenue of $76.3295billion with a Net Income of $2.637billion and in 2008 Total Revenue of $87.4719billion with a Net Income of $3.2121billion. Shares of CVS Caremark Corporation (CVS) traded recently at $30.44 per share, down from its 52weekHigh of $38.27 per share and over $43 per share in 2008.

Those who purchased CVS Caremark Corporation (NYSE:CVS) common stock during the period between May 5, 2009 and November 4, 2009, have certain options and there are strict and short deadlines running. Deadline: January 15, 2010. Those CVS shareholders and current long term CVS investors should contact the Shareholders Foundation, Inc at:

Email: mail@shareholdersfoundation.com  or at: +1 (858) 779 – 1554

Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-779-1554
Fax:+1-(858)-605-5739
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com
_____________________________________________________________________________________

Photo:
http://www.prlog.org/10419121/1