According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that:
- CVS had deficient internal controls;
- as a result of its deficient internal controls, CVS’s financial statements for the fiscal year 2022 contained false and/or misleading information;
- as a result of its deficient internal controls, the forecasts CVS used to determine plan premiums were ineffective at accounting for medical cost trends and health care utilization patterns;
- as a result, CVS was likely to incur significant expenses to cover cost increases that were not accounted for in the CVS’ forecasts and thus not covered by plan premiums;
- accordingly, CVS had overstated the profitability of its Health Care Benefits segment;
- contrary to defendants’ assurances, the revenues generated from CVS’ other primary segments were insufficient to offset the negative financial impact of the increasing expenditures within the Health Care Benefits segment; and
- as a result, CVS’ public statements were materially false and misleading at all relevant times.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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