The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Cardinal Health, Inc. (NYSE: CAH) who purchased shares between March 2, 2015 and May 2, 2018. The action, which was filed in the United States District Court for the Southern District of Ohio, alleges that the Company violated federal securities laws.
In particular, the Cardinal Health lawsuit alleges that 1) following Cardinal’s acquisition of Cordis, the RFID [radio-frequency identification] inventory tracking technology and advanced supply chain solutions that Defendants told investors the Company would to use to improve Cordis’s performance were never implemented across Cordis; 2) Cordis’s antiquated and ineffective global supply chain was causing operational and inventory problems at Cordis; 3) as a result, Cordis manufactured and accumulated excessive amounts of cardiovascular product inventories, which sat on the shelf and became unsellable and/or expired; 4) the Company materially overstated Cordis’s inventory balances; 5) Cordis was not “performing well” and its integration was not “on track,” “going incredibly well” or “largely on plan”; and 6) to correct Cordis’s deficiencies, the Company would have to make substantial investments in Cordis’s IT and supporting infrastructure, thereby incurring significant Selling, General and Administrative Expenses charges beyond the levels internally budgeted or projected by Cardinal and diminishing operating earnings.
Shareholders have until September 30, 2019 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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