World News: 20:41 GMT Wednesday 11th September 2019. [Faruqi & Faruqi LLP via Globe Newswire via SPi World News]
NEW YORK, Sept. 11, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Cardinal Health, Inc. (“Cardinal Health” or the “Company”) (NYSE:CAH) of the September 30, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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The lawsuit has been filed in the U.S. District Court for the Southern District of Ohio on behalf of all those who purchased Cardinal Health common stock between March 2, 2015 and May 2, 2018 (the “Class Period”). The case, No. 19-cv-03347 was filed on August 1, 2019, and has been assigned to Judge Edmund A. Sargus.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by misleading investors by stating that Cordis Corp. (“Cordis”), a manufacturer of medical devices that Cardinal purchased from Johnson & Johnson in March of 2015, would benefit from Cardinal's advanced inventory management and supply chain information technology solutions.
On August 2, 2017, 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.
On this news, the Company's stock price fell from $77.33 per share on August 1, 2017 to $70.99 per share on August 2, 2017, a $6.34 or 8.20% drop.
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.
On this news, the Company's stock price fell from $64.65 per share on May 2, 2018 to $50.80 per share on May 3, 2018, a $13.85 or 21.42% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Cardinal Health’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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Globe Newswire: 20:41 GMT Wednesday 11th September 2019
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