Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 In Cardinal Health, Inc. To Contact The Firm
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.
If you invested in Cardinal Health stock or options between March 2, 3015 and May 2, 2018 and would like to discuss your legal rights, please fill out the form below. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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, 3015 and May 2, 2018 (the “Class Period”). The case, Louisiana Sheriffs Pension & Relief Fund v. Cardinal Health, Inc. et al., 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.
Cardinal Health, Inc. (CAH)
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Filed on 08/01/2019
Lead Plaintiff Deadline 09/30/2019
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Richard W. Gonnello email@example.com Phone (212) 983-9330 Fax (212) 983-9331