NEW YORK, Oct. 03, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Covetrus, Inc. ("Covetrus" or the "Company") (CVET) of the November 29, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Covetrus stock or options between February 8, 2019 and August 12, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/CVET. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Covetrus common stock between February 8, 2019 and August 12, 2019 (the "Class Period"). The case, City of Hollywood Police Officers Retirement System v. Henry Schein, Inc. et. al., No. 19-cv-05530 was filed on September 30, 2019, and has been assigned to Judge Frederic Block.
Covetrus was formed through a spin-off and merger of the Animal Health Business of Henry Schein with Vets First Choice (“VFC”), a privately-held company, to create what the Company described to investors as the “only global animal health technology and services company.” In the offering documents for the spin-merger and throughout the Class Period, Defendants made a series of false and misleading statements and omissions concerning the newly combined companies’ infrastructure and capabilities, as well as the true costs of becoming independent from Henry Schein.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose material adverse facts about Covetrus’ business, operations, and prospects. Specifically, Defendants’ representations 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 reported 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 lowered its 2019 EBITDA guidance to $200 million, down from its prior EBITDA guidance of approximately $250 million issued in February and May 2019. The company commented it 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, Covetrus's share price fell from $23.19 per share on August 12, 2019 to a closing price of $13.89 on August 13, 2019: a $9.30 or a 40.10% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Covetrus's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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