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:4/29/2016)... , April 29, 2016 ... Life Sciences, Product Development Capabilities in ... Customer Base . Indegene ( ... announced the acquisition of Skura Corporation,s life science ... in adaptive sales enablement technology for life science ...
(Date:4/28/2016)... 28, 2016   Click here for supplemental ... (NYSE: DPLO), the nation,s largest independent specialty pharmacy, ... agreement to acquire Valley Campus Pharmacy, Inc., doing ... leading specialty pharmacy that provides individualized patient care, ... . In 2015, TNH generated approximately $400 million ...
(Date:4/28/2016)... Dr. ... und Stephen Schmidt werden Teil ... ein führender Anbieter cloudbasierter Softwarelösungen für den ... neue Führungskräfte zum Team Sicherheit und Pharmakovigilanz ... Erfahrungen mitbringen.  Dies wird die Geschäftseinheit Sicherheit ...
Breaking Medicine Technology:
(Date:4/29/2016)... , ... April 29, 2016 , ... ... by the Accreditation Council for Graduate Medical Education (ACGME) that it has received ... is the first accreditation of three residency programs that Memorial is currently pursuing, ...
(Date:4/29/2016)... ... April 29, 2016 , ... ... of our nation’s productivity, stability, even security. Most importantly, employees are the single ... Then why are American workers so unhappy? , Just under half of American ...
(Date:4/29/2016)... ... , ... Coast Dental Fort Stewart is celebrating its grand opening with an ... Furniture Mall at 112 Vilseck Road in Fort Stewart. There will be refreshments, giveaways, ... have the opportunity to meet general dentists Thomas Richards, DDS, and Josh Faulk, DMD, ...
(Date:4/29/2016)... ... 29, 2016 , ... Mobility Designed is redefining mobility with their patent ... M+D Crutch evenly distributes body weight from the elbow to the forearm. In ... crutches than with other crutches. , Co-founders Max and Liliana Younger were inspired to ...
(Date:4/29/2016)... ... ... Dr. Robert Mondavi, one of the dentists in Torrance , is ... field as more patients are discovering the many different ways they can change and ... available to them and which ones might work for their smiles. , “One ...
Breaking Medicine News(10 mins):