NEW YORK, Oct. 1, 2019 /PRNewswire/ -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces the filing of a securities class action on behalf of shareholders that purchased or acquired shares of Covetrus, Inc. ("Covetrus" or the "Company") (CVET) from February 8, 2019, through August 12, 2019, inclusive (the "Class Period"). The lawsuit filed in the United States District Court for the Eastern District of New York alleges violations of the Securities Exchange Act of 1934.
If you purchased Covetrus securities, and/or would like to discuss your legal rights and options please visit Covetrus Shareholder Class Action or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors:(i) overstated Covetrus capabilities with regard to inventory management and supply chain services; (ii) understated the costs of the integration of Henry Schein's Animal Health Business and VFC, including the timing and nature of those costs; (iii) understated Covetrus separation costs from Henry Schein; and (iv) understated the impact on earnings from online competition and alternative distribution channels as well as the impact of the loss of a large customer in North America just prior to the Company's separation from Henry Schein.
On August 13, 2019, before the market opened, Covetrus shocked investors by reporting a net loss of $0.09 per share for the second quarter of 2019 compared to consensus analyst estimates of $0.17 in net income per share. Covetrus also slashed its 2019 EBITDA guidance to just $200 million, down substantially from its prior EBITDA guidance of approximately $250 million issued in February and May 2019, only a few months prior. In doing so, Covetrus admitted that the Company would have to spend tens of millions of dollars more in infrastructure spending and redundant costs. The Company also admitted previously undisclosed difficulties integrating the platforms and disclosed increased spending to eliminate obligations to Henry Schein as part of the spin-off agreement.
On this news, the Company's stock price plummeted 40%, declining $9.30 per share, to close at $13.89 per share on August 13, 2019.
If you purchased Covetrus securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/covetrusinc-cvet-shareholder-class-action-lawsuit-fraud-stock-193/apply/ or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
If you wish to serve as lead plaintiff, you must move the Court no later than November 29, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2019 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
View original content to download multimedia:http://www.prnewswire.com/news-releases/cvet-class-action-deadline-bernstein-liebhard-llp-announces-the-filing-of-a-securities-class-action-against-covetrus-inc-300929088.html