Bernstein Liebhard LLP Announces That A Suit Has Been Filed Against Express Scripts Holding Company
May 5, 2016
Bernstein Liebhard LLP today announced that a securities class action has been filed in the United States District Court for the Southern District of New York on behalf of a class (the “Class”) consisting of all persons or entities who purchased or otherwise acquired the common stock of Express Scripts Holding Company (“Express Scripts” or the “Company”) (NASDAQ: ESRX) between February 24, 2015 and March 21, 2016, inclusive (the “Class Period”). The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Express Scripts is the largest stand-alone pharmacy benefit manager (“PBM”) in the country. As a PBM, Express Scripts administers the prescription drug benefit component of its customers’ health insurance plans. Express Scripts also negotiates drug prices with pharmacies and establishes a network of pharmacies through which patients can fill their prescriptions.
Plaintiffs allege that during the Class Period, Defendants made false and misleading statements relating to Express Scripts’ most important client, Anthem, Inc. (“Anthem”). Pursuant to the Company’s contract with Anthem, Anthem could periodically conduct a market analysis to ensure that Anthem was receiving “competitive benchmark pricing” on drugs purchased through plans administered by Express Scripts. Express Scripts repeatedly assured investors that its relationship with Anthem remained strong and that it was providing Anthem, and all of its customers, with high quality service.
On January 12, 2016, Anthem publicly threatened to terminate its relationship with Express Scripts unless the Company renegotiated its agreement with Anthem to deliver more than $3 billion in annual savings to Anthem. On this news, Express Scripts stock fell from a January 12, 2016 closing price of $85.58 per share to close on January 13, 2016 at $79.69 per share.
On March 21, 2016, Anthem sued Express Scripts alleging that the Company breached its contract with Anthem by failing to negotiate drug pricing terms in good faith. The lawsuit revealed a conflict between Express Scripts and Anthem dating back to at least February 2015.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Express Scripts common stock during the Class Period. If you invested in Express Scripts common stock as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than July 5, 2016.
A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as an Express Scripts investor and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.