Stull, Stull & Brody Announces Class Action on Behalf of Shareholders of CVS Caremark Corporation

Attorney Advertising. Notice is hereby given that a class action has been commenced in the United States District Court for the District of Rhode Island on behalf of purchasers of CVS Caremark Corporation (“CVS” or the “Company”) (NYSE: CVS) common stock during the period between May 5, 2009 and November 4, 2009, inclusive (the “Class Period”), for violations of the Securities Exchange Act of 1934 (the “Exchange Act”).

Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought CVS stock through your CVS retirement account and have information or would like to learn more about these claims, please contact us.

The complaint charges CVS and certain of its officers and directors with violations of the Exchange Act. CVS, since its March 2007 $22 billion acquisition of pharmacy benefits manager Caremark Rx Inc. (“Caremark”), is a fully integrated pharmacy services company and operates in two business segments: pharmacy services and retail pharmacy. The pharmacy services business includes CVS’s pharmacy benefit management business, commonly known as the PBM business, which was acquired in the Caremark acquisition in 2007. The PBM business is the principal component of the pharmacy services business segment.

The complaint alleges that, throughout the Class Period, defendants made numerous positive statements regarding the Company’s financial condition, business and prospects. The complaint further alleges that CVS failed to disclose operating problems in the PBM business, the more than $6 billion in contractual losses for 2010 and the adverse impact this would have on its 2010 financial results. According to the complaint, CVS belatedly disclosed that the Federal Trade Commission (“FTC”) had begun a “nonpublic investigation” in August 2009 into whether CVS’s business practices and service offerings violated antitrust laws. Among the business practices of CVS that the FTC is reportedly investigating is the improper use of pricing and patient data from its retail pharmacy operations to steer its PBM members to CVS stores.

On November 5, 2009, CVS issued a press release announcing the disclosures of the adverse material facts concerning the PBM business and their adverse impact on CVS's financial results for 2010, and the FTC investigation. In response to this press release, the price of CVS common stock fell 20% to close at $28.87.

If you purchased Advanta securities between May 5, 2009 and November 4, 2009, you may, not later than January 18, 2010, request that the Court appoint you as lead plaintiff for the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation, and you must meet certain legal requirements to serve as a lead plaintiff.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Stull, Stull & Brody. Stull, Stull & Brody has litigated many class actions for violations of securities laws on behalf of defrauded investors over the past 40 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody has offices in New York and Los Angeles. The Stull, Stull & Brody website (www.ssbny.com) has more information about the firm.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at http://www.ssbny.com/.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.