Bloomberg Law
Aug. 31, 2020, 5:50 PM

CVS, Aetna Hit With ERISA Suit Over 401(k) Merger, Stock Drop

Jacklyn Wille
Jacklyn Wille
Legal Reporter

Aetna employees who invested in company stock in their 401(k) accounts got a bad deal when their stock units were converted to allegedly overvalued CVS Health Corp. stock units in connection with the companies’ 2018 merger, according to a proposed class action filed in federal court in Connecticut.

Aetna plan participants Tammy Marion and Raymond Radcliffe say they lost retirement money by investing in CVS stock that was artificially inflated because of the company’s 2015 takeover of nursing-home pharmacy Omnicare. Aetna shareholders weren’t given full and accurate information about CVS’s problems with Omnicare when they voted to approve the merger ...