June 20, 2005

CVS Settles

In the wake of the billion dollar settlements in the Enron and WorldCom cases, it is easy to forget that a hundred million dollar settlement used to be considered very significant. CVS Corp. (NYSE: CVS), the country's largest pharmacy chain, recently announced the preliminary settlement of the securities class action pending against the company in the D. of Mass. The case, originally filed in 2001, was scheduled to go to trial last month. The plaintiffs alleged that CVS failed to properly account for marked down items.

The settlement is for $110 million and will be paid "primarily" by the company's insurance carriers. The Boston Globe had this report.

Posted by Lyle Roberts at June 20, 2005 11:39 PM | TrackBack
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