855.846.6529 tmiles@timmileslaw.com

Covetrus, Inc. (CVET) Accused of Misleading Shareholders 

According to the complaint for alleged violations of the Securities Exchange Act of 1934 between February 8, 2019 and August 12, 2019, on April 23, 2018, Henry Schein announced the spin-off and merger of the Animal Health Business of Henry Schein with Vets First Choice (“VFC”). Covetrus shares began trading on February 8, 2019.  Throughout the class period and in the Offering Documents for the spin-merger, Henry Schein highlighted Covetrus’ strengths and touted Covetrus as a technology-enabled animal health business with a comprehensive service and technology platform and supply chain infrastructure. These benefits were reaffirmed later in Covetrus’ financial reports and the Company reassured that the integration was “on track” to hit financial targets. However, in reality, Covetrus’ strengths were overstated and the costs of the integration as well as the separation of Covetrus from Henry Schein had been much higher than represented. Then, on August 13, 2019, Covetrus shockingly reported a net loss of $0.09 per share rather than the expected increase of $0.17 per share and slashed its EBITDA guidance from estimates of $250 million to a realized $200 million. In its explanation, Covetrus confessed the undisclosed difficulties it was having in platform integration and separations costs from Henry Schein. Since this news, Covetrus’ stock has plummeted with a decline of $9.71, or 42%, per share and currently trades at around $13.50.

If you are a concerned shareholder who owns shares in CVETV and would like more information about your rights and potential remedies you can call us toll-free at 855-846-6529 or send us a message via the Shareholder Information below or by email to tmiles@timmileslaw.com.

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