Covetrus Must Face Some Investor Claims; Henry Schein Beats Suit

Henry Schein Inc. is free of investor allegations connected to the 2019 spinoff that became Covetrus Inc., but accusations that the new company misled investors about integration issues may move forward, a federal judge in New York said.

Investors didn’t sufficiently allege that any of Henry Schein’s statements were false, the U.S. District Court for the Eastern District of New York said. However, their claims against Covetrus—formed after Henry Schein spun off its “large if lumbering veterinary health business"—"narrowly” survive dismissal.

The investors’ latest complaint “purports to tie significant losses to allegedly false and misleading statements by defendants,” Judge ...