CVS Caremark Litigation
CVS Caremark Litigation
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The information contained on this web page is only a summary of information presented in more detail in the Notice of Proposed Settlement of Class Action (the “Notice”), which you can access by clicking here.  Since this website is just a summary, you should review the Notice for additional details.

Your Legal Rights Are Affected Whether You Act or Do Not Act.  Please Read the Notice Carefully.

IF YOU PURCHASED, OR OTHERWISE ACQUIRED, THE COMMON STOCK OF CVS CAREMARK CORPORATION ("CVS CAREMARK") (N/K/A CVS HEALTH CORPORATION) BETWEEN OCTOBER 30, 2008 AND NOVEMBER 4, 2009 INCLUSIVE (THE "CLASS PERIOD"), YOU MAY BE ENTITLED TO A PAYMENT FROM A CLASS ACTION SETTLEMENT.



IMPORTANT DATES AND DEADLINES

SUBMIT A CLAIM FORM

Postmarked or received on or before March 23, 2016

Because of an error that inadvertently transposed the zip code on certain claim forms, please make note of the correct zip code (below) when mailing in your claim form‎ to: CVS Caremark Litigation, Claims Administrator c/o A.B. Data, Ltd., P.O. Box 170200, Milwaukee, WI 53217.


 

EXCLUDE YOURSELF

The deadline has passed

OBJECT TO THE SETTLEMENT

The deadline has passed

SETTLEMENT HEARING

January 19, 2016 at 12:00 p.m.

 

United States District Court for the District of New Hampshire

DO NOTHING

Receive no payment

 

The Court’s Settlement Hearing

A hearing (“the Settlement Hearing”) was held on January 19, 2016, at 12:00 p.m., before the Honorable Joseph N. Laplante, United States District Judge, at the United States District Court for the District of New Hampshire, 55 Pleasant Street, Courtroom 2, Concord, New Hampshire 03301-3941. The purpose of the Settlement Hearing was to determine: (1) whether the proposed Settlement, as set forth in the Stipulation, consisting of Forty-Eight Million Dollars ($48,000,000.00) in cash, should be approved as fair, reasonable, and adequate to the Members of the Class; (2) whether the proposed plan to distribute the Settlement proceeds (the “Plan of Allocation”) is fair, reasonable, and adequate; (3) whether the application by Lead Counsel for an award of attorneys’ fees and expenses and the expenses of Co-Lead Plaintiffs should be approved; and (4) whether the Judgment, in the form attached to the Stipulation, should be entered. The Court approved the Settlement, the Fee and Expense Application, and Plan of Allocation on February 17, 2016 and entered a Final Judgement and Order of Dismissal With Prejudice on February 29, 2016.

What is this case about?

In March 2007, CVS Corp., the nation’s largest retail pharmacy chain, completed its much-anticipated merger with Caremark Rx Inc., the second largest prescription benefits manager (“PBM”), forming CVS Caremark (the “Merger”). This case arises from Defendants’ materially false and misleading statements relating to the Merger, and, in particular, the success and profitability of the PBM business, which administers drug benefit programs on behalf of entities (e.g., employers) that provides prescription drug insurance to their enrollees or members (e.g., employees and retirees).

The operative complaint in the Litigation is the Corrected Consolidated Class Action Complaint, filed on June 1, 2010 (the “Complaint”) and alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Defendants have denied and continue to deny each and all of the claims alleged by Co-Lead Plaintiffs and the Class in the Litigation. Defendants expressly have denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts or omissions alleged, or that could have been alleged, in the Litigation. Defendants also have denied and continue to deny, among other allegations, the allegations that Co-Lead Plaintiffs or the Class have suffered any damages, that the price of CVS Caremark common stock was artificially inflated by reasons of alleged misrepresentations, non-disclosures or otherwise, or that Co-Lead Plaintiffs or the Class were harmed by the conduct alleged in the Litigation or that could have been alleged as part of the Litigation. Defendants believe that the evidence developed to date supports their position that they acted properly at all times and that the Litigation is without merit. In addition, Defendants maintain that they have meritorious defenses to all claims alleged in the Litigation.

Nonetheless, Defendants have concluded that further conduct of the Litigation would be protracted and expensive, and that it is desirable that the Litigation be fully and finally settled in the manner and upon the terms and conditions set forth in the Stipulation. Defendants also have taken into account the uncertainty and risks inherent in any litigation, especially in complex cases such as this Litigation.

The Settlement Benefits

The Settlement Fund consists of Forty-Eight Million Dollars ($48,000,000.00) in cash, plus any interest earned thereon.

A portion of the Settlement proceeds will be used to pay attorneys’ fees and expenses to Lead Counsel and Co-Lead Plaintiffs’ expenses, to pay for Notice and Administration Expenses, and to pay Taxes and Tax Expenses. The balance of the Settlement Fund (the Net Settlement Fund) will be distributed, in accordance with the Plan of Allocation described in the Notice, to Class Members who submit valid and timely Proofs of Claim.

The Rights of Class Members

If you are a Class Member, you have the following options:

Submit a Proof of Claim Form

If you are a Class Member, in order to be potentially eligible to receive a payment under the proposed Settlement, you must submit a Proof of Claim form postmarked or received on or before March 23, 2016.  If you choose this option, you will share in the proceeds of the proposed Settlement if your claim is timely, valid, and entitled to a distribution under the Plan of Allocation described in the Notice and if the proposed Settlement is finally approved by the Court; you will be bound by the Judgment and release to be entered by the Court.

 Exclude yourself from the Class

If you are a Class Member and wish to exclude yourself from the Class, you must submit a written request for exclusion such that it is postmarked on or before January 6, 2016, in accordance with the instructions set forth in the Notice.  If you submit a valid and timely request for exclusion, you shall have no rights under this Settlement, shall not share in the distribution of the Net Settlement Fund, and shall not be bound by the Stipulation or the Judgment.

Object to the Settlement

Any Class Member who objects to any aspect of the Settlement, the Plan of Allocation, the application for attorneys’ fees and expenses, or the expenses of Co-Lead Plaintiffs may appear and be heard at the Settlement Hearing. However, any such Person must submit a written notice of objection, such that it is received on or before February 16, 2016, in accordance with the instructions set forth in the Notice.

Do Nothing

If you choose this option, you will not share in the proceeds of the Settlement, but you will be bound by any judgment entered by the Court, and you shall be deemed to have, and by operation of the Judgment shall have, fully released all of the Released Claims against the Released Persons.

Further Information

This website and the Notice summarizes the Settlement.  For more details regarding this Settlement please reference the Stipulation of Settlement, dated August 24, 2015, or other documents filed in the case under the “Court Documents” link on the left.  You may also contact the Claims Administrator or Lead Counsel for further information regarding this Settlement:

 

  Claims Administrator:

  CVS Caremark Litigation
  Claims Administrator
  c/o A.B. Data, Ltd.
  PO Box 170200
  Milwaukee, WI  53217
  1-800-949-0206
  info@CVSSecuritiesSettlement.com

Lead Counsel:

ROBBINS GELLER RUDMAN & DOWD LLP

Rick Nelson
Shareholder Relations
655 West Broadway
Suite 1900
San Diego, CA  92101
800-449-4900
www.rgrdlaw.com

LABATON SUCHAROW LLP

Nicole M. Zeiss
140 Broadway
34th Floor
New York, NY 10005
888-219-6877


If you have questions, you may call the CVS Caremark Litigation Help Line at 800-949-0206 or email info@CVSSecuritiesSettlement.com

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