CVS, Officers Sued Over Stock Price, $764 Million Buyback (1)

CVS Health Corp. and its officers committed fraud and breached their fiduciary duties by artificially pumping up the company’s stock prices and then buying it back at the inflated prices, which caused the stock to lose about a third of its value, a derivative suit filed in federal court says.

The wrongdoing was committed between May 3, 2023 and April 30, 2024, the complaint filed Aug. 30, by Chaya Sara Kaufmann, says. During the relevant period, CVS’s stock prices dropped from $74.36 to $56.31 per share and the buyback was worth $764 million, it says.

CVS computes its pricing for ...