Navigation Links
CtW Investment Group Files Complaint With SEC Regarding CVS Caremark Insider Transactions
Date:4/22/2010

Raises Concern with Company's Pattern of Partial and Delayed Disclosures During Critical Period

WASHINGTON, April 22 /PRNewswire/ -- The CtW Investment Group filed a letter of complaint with the Securities and Exchange Commission today, seeking an inquiry into insider transactions by CVS Caremark Corporation (NYSE: CVS) Chairman and CEO Thomas Ryan and other senior executives.  

Citing sales between August and November 2009 of 1.5 million CVS shares, for a combined profit of $17.3 million, by Mr. Ryan and three other senior executives – Howard McClure, Executive Vice President and then-President of the pharmacy benefit management (PBM) segment, David Rickard, outgoing Chief Financial Officer, and Douglas Sgarro, Chief Legal Officer – CtW expressed concern that the sales may have been made while the executives were in possession of significant non-public information.  

"What concerns us about these sales is that the executives, including Chairman and CEO Tom Ryan, may have traded their shares at the same time that the Company had not fully disclosed what it knew about how its PBM segment was faring, news that caused CVS share price to plummet when it was finally disclosed to shareholders on November 5," said William Patterson, Executive Director of the CtW Investment Group.  "We believe the matter warrants an inquiry by the SEC."

On August 4, 2009 Mr. Ryan had made optimistic earnings projections for 2010 – which may have been overstated even at the time according to CtW – that were not subsequently scaled back until November 5, 2009, despite evidence that at least some of the big losses and the overall performance problems for the PBM segment may have been known to the Company months earlier.  When the 2010 business losses were finally announced to shareholders on November 5, 2009 – along with the news that the Company had been under investigation by the Federal Trade Commission since August – CVS share price fell 20% in one day, wiping away more than $10 billion in shareholder value.  Throughout 2009 the Company was under tremendous pressure to demonstrate to shareholders that CVS' acquisition of the PBM Caremark was a success, which CtW contends made the disclosure deficiencies particularly significant.

The CtW Investment Group works with pension funds sponsored by unions affiliated with Change to Win, a coalition of unions representing 5.5 million members, to enhance long-term shareholder value through active ownership.  These funds are substantial long-term CVS Caremark shareholders.


'/>"/>
SOURCE Change to Win
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. Fulcrum Ventures Leads $1.25 Million Investment in Path-Tec, LLC
2. R&D Investment by U.S. Biopharmaceutical Companies Increases to Record $65.3 Billion, Study Finds
3. R&D Investment by U.S. Biopharmaceutical Companies Remains Strong Despite Ongoing Economic Challenges
4. China Biologic Products to Present at the Rodman & Renshaw Annual China Investment Conference
5. Glide Pharma Completes Oversubscribed GBP2.7 Million ($4.3 Million) Investment Round
6. Wound Management Technologies, Inc. Engages Miller Tabak, A National Investment Banking Firm Specializing in the Healthcare Market Space
7. Zassi Medical Evolutions Spins out Electrical Stimulation Technology for Gastrointestinal Continence Control and Forms New Company with Technology Investment Firm
8. VirtualScopics to Present at the Upcoming OneMedPlace Investment Conference
9. Suneva Medical Signs Multi-Million Dollar Line of Credit Agreement with Western Technology Investment
10. Circassia Raises GBP15 Million ($25 Million) in Oversubscribed Investment Round
11. Governor Rendell: New State Investments Bear Fruit in Adams County; Help Pharmaceutical Company Expand in Philadelphia
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/23/2016)... VIEW, Calif. , June 23, 2016 ... a.m. CST on Thursday, July 7, 2016 , , , ... kayla.belcher@frost.com ) , , , , EXPERT PANELISTS:  , ... Nitin Naik; Senior Industry Analyst, Christi Bird; Senior Industry Analyst, Divyaa ... The global pharmaceutical industry is witnessing an ...
(Date:6/23/2016)... June 23, 2016  Guerbet announced today that it ... Supplier Horizon Award . One of 12 ... recognized for its support of Premier members through exceptional ... excellence, and commitment to lower costs. ... recognition of our outstanding customer service from Premier," says ...
(Date:6/23/2016)... YORK , June 23, 2016 ... waters, but it continues to present great opportunities to ... companies for today: Intrexon Corp. (NYSE: XON ... Arena Pharmaceuticals Inc. (NASDAQ: ARNA ), and ... more about these stocks and receive your complimentary trade ...
Breaking Medicine Technology:
(Date:6/24/2016)... ... ... crisis. Her son James, eight, was out of control. Prone to extreme mood shifts and ... him, he couldn’t control his emotions,” remembers Marcy. “If there was a knife on ... say he was going to kill them. If we were driving on the freeway, ...
(Date:6/24/2016)... ... ... Global law firm Greenberg Traurig, P.A. announced that 20 Florida attorneys are recognized ... this recognition are considered among the top 2 percent of lawyers practicing within the ... this year’s Legal Elite Hall of Fame: Miami Shareholders Mark D. Bloom, Burt ...
(Date:6/24/2016)... ... ... Comfort Keepers® of San Diego, CA is excited to announce they are ... drive cancer patients to and from their cancer treatments. Comfort Keepers provides quality ... and ongoing independence. Getting to and from medical treatments is one of the ...
(Date:6/24/2016)... ... June 24, 2016 , ... People across the U.S. are sharpening their pencils ... an essay contest in which patients and their families pay tribute to a genetic ... 2016 National Society of Genetic Counselors (NSGC) Annual Education Conference (AEC) this September. ...
(Date:6/24/2016)... ... June 24, 2016 , ... The Haute Beauty Network, affiliated ... Weintraub as a prominent plastic surgeon and the network’s newest partner. , ... most handsome men, look naturally attractive. Plastic surgery should be invisible.” He stands ...
Breaking Medicine News(10 mins):