Class Action Lawsuits Filed Against CVS, Walgreens, Vicor, and American Airlines

NEW YORK, Aug. 12, 2024 — Bragar Eagel & Squire, P.C., a prominent shareholder rights law firm, has announced the initiation of class action lawsuits on behalf of investors in CVS Health Corporation (NYSE: CVS) and other major companies, including Walgreens Boots Alliance, Vicor Corporation, and American Airlines Group. The lawsuits cover a class period from May 3, 2023, to April 30, 2024, focusing on allegations of misleading financial disclosures and inadequate forecasting of healthcare costs. The complaints assert that CVS Health misrepresented its financial health by failing to accurately account for rising medical costs and healthcare utilization trends. As a result, the company overstated the profitability of its Health Care Benefits segment, leading to significant financial discrepancies. CVS's recent earnings reports revealed substantial declines in operating income, prompting multiple revisions of its earnings-per-share (EPS) guidance throughout 2023 and into 2024. In a series of press releases, CVS disclosed a decrease in EPS guidance, citing a $1.4 billion drop in operating income for the quarter ending June 30, 2023, primarily due to challenges in the Health Care Benefits segment. The company’s Chief Financial Officer acknowledged a projected decrease in adjusted operating income for this segment, attributing the downturn to increased healthcare service utilization and cuts in Medicare reimbursement rates. As CVS navigates these financial challenges, the lawsuits highlight concerns over the company's transparency and the impact of its financial mismanagement on investors. The legal actions underscore the growing scrutiny of corporate practices in the healthcare sector.