CVS Health Corp., Woonsocket, R.I., agreed to pay $48 million to settle claims it made misleading statements regarding its 2007 merger with Caremark Rx Inc.
The $356 million Brockton (Mass.) Retirement System; $770 million Norfolk County Retirement System, Canton, Mass.; and $830 million Plymouth County (Mass.) Retirement Association are among the investors that reached the settlement with CVS over its alleged misstatements regarding the merger’s success.
Issues with the merger, such as customer service problems, were concealed by CVS officials culminating in artificially inflated stock prices, plaintiffs alleged.
An attorney for the plaintiffs declined to comment on the case beyond the settlement documents filed Monday in a U.S. District Court in Providence, R.I.
CVS has denied any wrongdoing.
“The company denies any wrongdoing and has agreed to a settlement of this case to avoid the burden, uncertainty and expense of continuing litigation. The settlement will be funded by insurance proceeds,” a CVS spokeswoman said in an e-mail Wednesday.
The settlement is pending court approval.
