A lawsuit was filed on behalf of investors in Cardinal Health, Inc. (NYSE: CAH) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 08/21/2019 -- An investor, who purchased shares of Cardinal Health, Inc. (NYSE: CAH), filed a lawsuit over alleged violations of Federal Securities Laws by Cardinal Health, Inc. in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Cardinal Health, Inc. (NYSE: CAH) have certain options and for certain investors are short and strict deadlines running. Deadline: September 30, 2019. NYSE: CAH investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Dublin, OH based Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States and internationally.
On August 2, 2017, Cardinal Health, Inc reported its 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.
Cardinal Health, Inc assured its 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."
Then, on May 3, 2018, Cardinal Health, Inc announced its results for its third quarter fiscal year 2018 and cut its fiscal year 2018 earnings guidance. Cardinal Health, Inc 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.
Shares of Cardinal Health, Inc. (NYSE: CAH) declined from $84.88 per share in March 2017 to as low as $42.02 per share in May 2019.
The plaintiff claims that between March 2, 2015 and May 2, 2018, the defendants misled investors by stating that Cordis would benefit from Cardinal's advanced inventory management and supply chain information technology solutions, that 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", and that as a result of these misrepresentations, Cardinal shares traded at artificially inflated prices between March 2, 2015 and May 2, 2018.
Those who purchased shares of Cardinal Health, Inc. (NYSE: CAH) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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