CVS Omnicare Earnings Problems Draw Investor Class Action

CVS Health Corp. didn’t tell investors that its 2015 merger with Omnicare Inc. was dragging down its earnings and overall financial condition, a Feb. 25 class complaint alleges.

The health chain misled investors about how the Omnicare acquisition had led to “rising costs and poor results,” eating into the company’s finances, according to the suit filed in the U.S. District court for the Southern District of New York.

CVS meant for the Omnicare purchase to grow its ability to reach assisted living and long-term care facilities, the complaint says. But those facilities have seen their own finances deteriorate as occupancy ...