ADDITIONAL CASES Orlando Tatone, individually and on behalf of all others similarly situated, Plaintiff v. CVS Health Corp., et al., Defendants; 24-CV-06771 OPINION & ORDER Plaintiffs Ivy Nixon and Orlando Tatone in the two above-captioned, consolidated cases1 assert securities fraud claims against Defendant CVS Health Corporation and individual Defendants Karen S. Lynch, Shawn M. Guertin, and Thomas F. Cowhey (together, “individual Defendants”), all of whom are or were executives at CVS, based on allegedly false and misleading statements and omissions made about CVS’s Health Care Benefits segment. Both actions were brought pursuant to the Private Securities Litigation Reform Act (“PSLRA”). Pending before the Court are two motions to appoint lead plaintiff and appoint lead counsel. See Dkt. Nos. 15, 17. For the reasons discussed below, the Court appoints the Louisiana Sheriffs’ Pension and Relief Fund, Southeastern Pennsylvania Transportation Authority, and City of Miami Fire Fighters’ and Police Officers’ Retirement Trust as lead plaintiffs, and appoints Bernstein Litowitz Berger & Grossman LLP and Bleichmar Fonti & Auld LLP as lead counsel. FACTS AND PROCEDURAL HISTORY Defendant CVS Health Corporation (“CVS”) is a healthcare company with three main divisions: Health Care Benefits, Health Services, and Pharmacy and Consumer Wellness. Dkt. No. 1 2. CVS’s Health Care Benefits segment — the focus of this litigation — “purportedly offers ‘a broad range of traditional, voluntary and consumer-directed health insurance products and related services,’” and its “revenues consist almost entirely of insurance premiums paid by customers.” Id. Revenue for the Health Care Benefits segment is derived almost entirely from customers’ insurance premiums, and the profitability of the Health Care Benefits segment is reliant on the accuracy of CVS’s modeling of healthcare utilization patterns and medical cost trends, as well as CVS’s internal cost forecasts. Id.
3, 25. Between February 9, 2022 and April 30, 2024 (the “Class Period”),2 CVS represented that “its integrated health care model…lowers overall health care costs” and that its “Health Care Benefits segment is expected to continue to benefit from Medicare and Commercial membership growth.” Nixon, Dkt. No. 1
