NEW YORK, Aug. 1, 2019 /PRNewswire/ -- Bernstein Litowitz
Berger & Grossmann LLP ("BLB&G") today announced that it
filed a securities class action lawsuit on behalf of its client
Louisiana Sheriffs' Pension & Relief Fund ("Louisiana
Sheriffs") against Cardinal Health, Inc. ("Cardinal" or the
"Company") (NYSE: CAH), and certain of the Company's senior
executives (collectively, "Defendants"). The action, which is
captioned Louisiana Sheriffs' Pension & Relief
Fund v. Cardinal Health, Inc., No.
2:19-cv-03347-EAS-EPD (S.D. Ohio),
asserts claims under Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 on behalf of all purchasers of Cardinal common
stock between March 2, 2015 and
May 2, 2018, inclusive (the "Class
Period").
Cardinal is a global, integrated healthcare services and
products company. This action arises from Defendants'
misrepresentations and omissions relating to Cardinal's integration
of Cordis Corp. ("Cordis"), a medical device manufacturer Cardinal
purchased from Johnson & Johnson in March 2015, and the inventory and supply chain
problems at Cordis.
The Complaint alleges that, throughout the Class Period,
Defendants misled investors by stating that Cordis would benefit
from Cardinal's advanced inventory management and supply chain
information technology solutions. Defendants also falsely
represented that the Company properly "reserve[d] for inventory
obsolescence" and that "[i]nventories presented in the consolidated
balance sheets [were] net of reserves for excess and obsolete
inventory." As a result of these misrepresentations, Cardinal
shares traded at artificially inflated prices throughout the Class
Period.
The truth began to emerge on August 2,
2017, when Cardinal reported weak earnings for its fourth
quarter and fiscal year 2017 and lowered its earnings guidance
for fiscal year 2018 due in part to "higher-than-planned write-offs
for excess inventory" at Cordis. Defendants, however,
falsely assured Cardinal's investors that Cordis's operational
deficiencies had been addressed, that the Company had built the
necessary infrastructure and IT systems for Cordis such that it now
had "visibility" of Cordis's inventory, and that the Cordis
business was "going into a phase of a lot more
stability." Despite Defendants' attempt to soften
Cordis's poor performance, the price of Cardinal stock declined
from a closing price of $77.33 per
share on August 1, 2017, to a
closing price of $70.99 per share on August 2, 2017.
Then, on May 3, 2018, Cardinal
announced disappointing results for its third quarter fiscal year
2018 and cut its fiscal year 2018 earnings guidance. The
Company explained that the "biggest variable driving these results"
was the "disappointing performance" of the Cordis
business. Contrary to the Company's prior statements
that it had visibility into Cordis's inventory and that the Company
properly reserved for obsolete inventory, the Company revealed that
after launching a new global supply chain IT platform over the last
quarter at Cordis, it discovered millions of dollars of unsellable
and expired heart stents and catheters stationed overseas that had
to be written off. As a result of these disclosures, the
price of Cardinal's stock declined from a closing price of
$64.65 per share on May 2, 2018, to a closing price of $50.80 per share on May 3,
3018.
A copy of the complaint filed in this action is available on
BLB&G's website at www.blbglaw.com.
If you wish to serve as Lead Plaintiff for the Class, you must
file a motion with the Court no later than September 30, 2019, which is the first business
day on which the U.S. District Court for the Southern District of
Ohio is open that is 60 days after
the publication date of August 1,
2019. Any member of the proposed Class may move the Court to
serve as Lead Plaintiff through counsel of their choice.
Members may also choose to do nothing and remain part of the
proposed Class.
Louisiana Sheriffs is represented by BLB&G, a firm of over
100 attorneys with offices in New
York, California,
Louisiana, Illinois, and Delaware. If you wish to
discuss this action or have any questions concerning this notice or
your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or
via e-mail at avi@blbglaw.com.
Since its founding in 1983, BLB&G has built an international
reputation for excellence and integrity. Specializing in
securities fraud, corporate governance, shareholders' rights,
employment discrimination, and civil rights litigation, among other
practice areas, BLB&G prosecutes class and private actions on
behalf of institutional and individual clients worldwide.
Unique among its peers, BLB&G has obtained several of the
largest and most significant securities recoveries in history,
recovering billions of dollars on behalf of defrauded investors.
More information about BLB&G can be found online at
www.blbglaw.com.
CONTACT:
Avi Josefson
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas, 44th Floor
New York, New York 10020
(212) 554-1493
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