The Gross Law Firm Announces Class Actions on Behalf of Shareholders of TWOU, EVH and CVS
Wednesday, October 2, 2019 10:30 PM
NEW YORK, NY / ACCESSWIRE / October 2, 2019 / The securities litigation law firm of The Gross Law Firm issues the following notice on behalf of shareholders in the following publicly traded companies. Shareholders who purchased shares in the following companies during the dates listed are encouraged to contact the firm regarding possible Lead Plaintiff appointment. Appointment as Lead Plaintiff is not required to partake in any recovery.
2U, Inc. (NASDAQGS:TWOU)
Investors Affected : February 26, 2018 - July 30, 2019
A class action has commenced on behalf of certain shareholders in 2U, Inc. The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (a) 2U's business model was fundamentally flawed because the Company's costs were growing disproportionately as it grew in size and complexity; (b) 2U could not take advantage of the promised economies of scale because its costs to attract each marginal student were actually increasing, not decreasing, as represented; (c) 2U was facing heightened competitive headwinds as alternative offerings flooded the marketplace and universities developed online courses in-house; (d) 2U's growth rate in student enrollment was decelerating and was poised to decline as the Company reached market saturation; (e) 2U's growth strategy was unsustainable, as the Company faced accelerating costs and had insufficient capital to achieve positive cash flows, improve margins or continue its revenue growth; and (f) as a result of (a)-(e), above, Defendants lacked any reasonable basis to issue 2U's projections and financial forecasts.
Shareholders may find more information at https://securitiesclasslaw.com/securities/2u-inc-loss-submission-form/?id=3777&from=1
Evolent Health, Inc. (NYSE:EVH)
Investors Affected : March 3, 2017 - May 28, 2019
A class action has commenced on behalf of certain shareholders in Evolent Health, Inc. The filed complaint alleges that defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Evolent's partnership model was not aligned with its partners, as it was designed to parasitically increase its own revenue by extracting enormous administrative and management fees at the expense of its partners such as Passport Health Plan ("Passport"); (2) Passport was struggling financially, particularly after Kentucky cut its reimbursement rates, and the partnership between Evolent and Passport was becoming increasingly unsustainable; (3) Evolent was draining Passport of functions, employees, and money to such an extent that Passport was left on the verge of insolvency; (4) for several months, Passport was conducting a bidding process to sell itself to a financial buyer to prevent liquidation; and (5) as a result of the foregoing, Defendants public statements were materially false and/or misleading and/or lacked a reasonable basis.
Shareholders may find more information at https://securitiesclasslaw.com/securities/evolent-health-inc-loss-submission-form/?id=3777&from=1
CVS Health Corporation (NYSE:CVS)
Investors Affected : on behalf of all former Aetna Inc. shareholders who acquired CVS Health Corporation (CVS) shares in exchange for their Aetna shares in connection with CVS's acquisition of Aetna on November 28, 2018.
A class action has commenced on behalf of certain shareholders in CVS Health Corporation. According to the filed complaint, CVS made false and/or misleading statements in connection with its acquisition of Aetna and/or failed to disclose that: (a) by the end of 2017, CVS's financial condition and expected earnings had deteriorated as a result of rising costs and poor results being experienced in the long-term care ("LTC") unit associated with the 2015 acquisition of Omnicare; (b) in 2017, deteriorating conditions and prospects in CVS 's LTC unit prompted CVS to undertake hasty acquisitions of LTC pharmacies to compensate for the declining LTC business and/or mask the expected LTC goodwill impairment ahead of the planned Acquisition; (c) although negative LTC performance factors prompted CVS and the CVS Individual Defendants to make hasty LTC pharmacy acquisitions in 2017, those same negative factors were being overlooked and ignored for purposes of undertaking, disclosing, and reporting the results of LTC goodwill impairment tests throughout 2017, in violation of GAAP; (d) the LTC goodwill being carried on CVS's books as a result of the Omnicare acquisition was being carried at inflated values that would require billions of dollars in impairment charges that would be charged against earnings; and (e) as a result of the foregoing, CVS's true business metrics and financial prospects were not as the Offering Documents represented.
Shareholders may find more information at https://securitiesclasslaw.com/securities/cvs-health-corporation-loss-submission-form/?id=3777&from=1
The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a Company lead to artificial inflation of the Company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
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SOURCE: The Gross Law Firm