CVS Corp. announced that it has agreed to a $110 million settlement of a shareholders' lawsuit filed in 2001 in the U.S. District Court for the District of Massachusetts. The shareholders alleged that CVS made false and misleading statements to raise stock prices, violated accounting practices, and delayed accounting on merchandise discounts. According to the LA Times and the Orlando Sentinel, CVS agreed to the settlement purely as a business decision, sticking to its position that the allegations in the lawsuit were unfounded. A federal judge will decide today whether to preliminarily approve the settlement.
Posted by franchiselawblog at June 7, 2005 03:32 PM