Law Firm Investigates CVS Health Officers and Directors
Law firm Kahn Swick & Foti, LLC has commenced an investigation into the officers and directors of CVS Health Corporation. The probe follows the company's financial disclosures and a prior securities class action lawsuit.
New Orleans, LA – The law firm Kahn Swick & Foti, LLC (KSF) has initiated an investigation into the officers and directors of CVS Health Corporation (NYSE: CVS). The inquiry stems from the company's financial disclosures made in August 2023, which included a revised earnings per share guidance and a significant drop in operating income.
On August 2, 2023, CVS Health announced it was revising its diluted earnings per share (EPS) guidance range to $6.53 to $6.75 from $6.90 to $7.12. The company also reported that operating income decreased by $1.4 billion, or 30.7%, for the three months ended June 30, 2023, compared to the prior year, primarily due to declines in the Health Care Benefits segment.
Subsequent to these announcements, the company and certain of its executives were named in a securities class action lawsuit. The suit alleges that they failed to disclose material information during the class period, violating federal securities laws. That litigation remains ongoing.
KSF's investigation is focused on whether CVS Health's officers and/or directors breached their fiduciary duties to shareholders or otherwise violated state or federal laws. The firm is seeking individuals with information pertinent to the investigation.