CVS Should Face Class Suit Over Acquisition, Aetna Investors Say

Aetna Insurance Corp. investors should be able to resume their suit alleging CVS Health Corp. failed to disclose downsides before soliciting a vote in favor of acquiring the carrier, they told the First Circuit.

The district court that dismissed the class complaint used the wrong standards, treating the suit over offering documents as though it were a securities fraud case, the lead plaintiff for the investors said in a brief Thursday.

The decision of the US District Court for the District of Rhode Island “undermines a unique and important investor protection statute, the Securities Act of 1933, by conflating it ...