|Company Name||Cardinal Health|
|Class Period||March 2, 2015 to May 2, 2018|
|Motion Deadline||September 30, 2019|
|Court||United States District Court for the Southern District of Ohio|
Investors who purchased CAH securities between March 2, 2015 and May 2, 2018, and are interested in learning about the case or serving as a lead plaintiff, are encouraged to submit your information below to learn more about the case. The lawsuit alleges that Cardinal Health violated the federal securities laws.
The lawsuit alleges that the Defendants made materially false and misleading statements and omissions relating to Cardinal’s integration of Cordis Corp. (“Cordis”), a medical device manufacturer Cardinal purchased from Johnson & Johnson (“J&J”) in March 2015, and the inventory and supply chain problems at Cordis. The lawsuit further alleges that throughout the Class Period, Defendants misled investors by stating that Cordis would benefit from Cardinal’s advanced inventory management and supply chain information technology solutions. Defendants allegedly 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.” According to the complaint, the inventory tracking and supply chain technology that Defendants said the Company would use to improve Cordis’s performance was never implemented. Moreover, the complaint alleges that Cordis’s existing inventory control systems were deficient such that the Company lacked the ability to track Cordis’s inventory. Consequently, the Company allegedly materially overstated Cordis’s inventory balances by failing to account for significant amounts of unsellable or expired Cordis medical devices. It is further alleged that Cardinal falsely stated that Cordis was “performing well” and that the integration of Cordis was “on track,” “largely on plan,” and “going incredibly well,” while failing to disclose serious supply chain issues that were hurting the Company’s operational performance and financial results.
If you purchased Cardinal Health securities (NYSE ticker: CAH) between March 2, 2015 and May 2, 2018 and are interested in the lead plaintiff process, please contact the Thornton Law Firm’s shareholder rights team by providing your contact information below. Interested shareholders have until September 30, 2019 to apply to be lead plaintiff. The class has not yet been certified. Until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
Thornton Law Firm’s securities attorneys are highly experienced in representing individual shareholders and institutional investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. Thornton Law Firm is working with the F.D. Azar Law Firm in investigating this action. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.