https://www.morningstar.com/news/globe-newswire/9195363/cvs-health-corporation-class-action-the-gross-law-firm-reminds-cvs-investors-of-the-pending-class-action-lawsuit-with-a-lead-plaintiff-deadline-of-september-10-2024-cvs
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More than just bad management. They should have seen this coming. Senior leadership is asleep at the wheel and running the company into the ground.
There’s a difference between terrible management and fraud lol
There’s nothing illegal about:
I think this will happen
I think this will happen
I still think this will happen
Oh shoot we were wrong that didn’t happen
Bad management sure… but it’s not illegal to be stupid.
Karen and her crowd know how to work Wall Street shills. There has been frantic buying of CVS stock recently. The numbers are huge. The story is that CVS is an unappreciated Value Stock and you just have to be patient. How patient? Very patient. The management suggests 10 years. To quote John Maynard Keynes,” Eventually, we are all planted.”
They reaffirmed earnings forecasts on 3/5 for the quarter ending 3/31 and then missed horribly. The cvs legal defense should be leadership is merely incompetent instead of deceptive and then sending Karen and Tom up to talk.
and yet the stock is up since few days. cant wait to see how things turn out next week when they report earnings.
@hib+1tL9H0eP Yeah, AFTER the disastrous first quarter results were released. You didn't hear any of this beforehand. The fact of the matter is, it's getting laughable now. The bad news stories about CVS are never ending. The lawsuits, the losses, PBM issues, you name it. It's clear the ship is taking on water.
I mean weren’t they pretty clear and forthcoming that their forecasts on medical spend were off? Like that was def disclosed lol
Here are the Allegations (cut and pasted from the article below).
ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially 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.