NEW YORK, Aug. 24, 2019 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of Cardinal Health, Inc. ("Cardinal Health" or the "Company") (NYSE: CAH). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Cardinal Health and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
In March 2015, Cardinal purchased Cordis Corp. ("Cordis") from Johnson & Johnson. On August 2, 2017, Cardinal reported weak earnings for its fourth quarter and fiscal year 2017 and lowered its earnings guidance for fiscal year 2018 due in part to "higher-than- planned write-offs for excess inventory" at Cordis. On this news, Cardinal's stock price fell $6.34 per share, or 8.2%, to close at $70.99 per share on August 2, 2017.
Then, on May 3, 2018, Cardinal announced disappointing results for its third quarter fiscal year 2018 and cut its fiscal year 2018 earnings guidance. The Company explained that the "biggest variable driving these results" was the "disappointing performance" of the Cordis business. On this news, Cardinal's stock price fell $13.85 per share, or 21.42%, to close at $50.80 per share on May 3, 2018.
Cardinal subsequently took a $1.4 billion non-cash goodwill impairment charge driven by continued "inventory and cost challenges within [the] Cordis business" representing almost 70% of Cordis's acquisition price.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP