CVS Health Beats Investor Suit on Performance, Customer Losses

CVS Health Corp. is free of a would-be class suit alleging it misled investors about long-term care pharmacy struggles following a 2015 merger with Omnicare Inc. after a federal judge in Rhode Island dismissed the case.

Investors accused the healthcare company of putting out false and misleading information in an attempt to hide its struggling LTC pharmacy business ahead of another merger. But the CVS statements and omissions the investors challenged weren’t actionable, the U.S. District Court for the District of Rhode Island said.

CVS allegedly misled investors about its performance and operational success, failed to disclose its loss ...