CVS INVESTIGATION: Bragar Eagel & Squire, P.C. Continues Investigation into CVS Health Corporation on Behalf of Long-Term Stockholders and Urges Investors to Contact the Firm

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against CVS Health Corporation due to allegations of misleading statements and financial mismanagement during a specified class period [2][3]. Summary by Sections Investigation Background - A class action complaint was filed against CVS on July 12, 2024, concerning actions taken between May 3, 2023, and April 30, 2024, focusing on potential breaches of fiduciary duties by CVS's board of directors [2]. Allegations - The complaint alleges that CVS made materially false and misleading statements regarding its business operations and compliance policies, including: - Ineffective forecasts for plan premiums that did not account for medical cost trends and healthcare utilization [3]. - Significant unaccounted expenses leading to overstated profitability in the Health Care Benefits segment [3]. - Insufficient revenues from other segments to offset financial impacts from increasing expenditures in the Health Care Benefits segment [3]. Financial Performance and Stock Impact - On August 2, 2023, CVS revised its diluted EPS guidance from $6.90-$7.12 to $6.53-$6.75, reporting a $1.4 billion (30.7%) decrease in operating income for the quarter ended June 30, 2023, primarily due to declines in the Health Care Benefits segment [3]. - Following this announcement, CVS's stock price fell by $2.04 (2.73%) to close at $72.32 on August 3, 2023 [3]. - On November 1, 2023, CVS again reduced its diluted EPS guidance to $6.37-$6.61, citing ongoing issues in the Health Care Benefits segment [3]. - On February 7, 2024, CVS revised its EPS guidance to at least $7.06 from at least $7.26, with adjusted EPS guidance lowered to at least $8.30 from at least $8.50, leading to a stock price drop of $0.96 (1.27%) to $74.36 on February 8, 2024 [3]. - On May 1, 2024, CVS reported $88.4 billion in revenue, missing expectations, and revised its full-year 2024 guidance significantly downward, resulting in a stock price decline of $11.40 (16.84%) to $56.31 [3]. Next Steps for Investors - Long-term stockholders of CVS are encouraged to contact Bragar Eagel & Squire for more information regarding their rights and potential claims [4].