Covetrus Inc. Common Stock (NASDAQ: CVET)
According to the Complaint, Covetrus is a global, technology-enabled Animal Health Business that touts a comprehensive service and technology platform and supply chain infrastructure for the veterinary markets. Covetrus was formed when Henry Schein, a large publicly traded health care company, spun-off its Animal Health Business and combined it with VFC, a private technology company focused on veterinary markets.
The Complaint alleges that uring the Class Period, Defendants issued a series of false and/or misleading statements and failed to disclose material adverse facts about Covetrus' business, operations, and prospects. Specifically, the Complaint alleges Defendants' representations to investors: (i) overstated Covetrus' capabilities with regard to inventory management and supply chain services; (ii) understated the costs of the integration of Henry Schein's Animal Health Business and VFC, including the timing and nature of those costs; (iii) understated Covetrus' separation costs from Henry Schein; and (iv) understated the impact on earnings from online competition and alternative distribution channels as well as the impact of the loss of a large customer in North America just prior to the Company's separation from Henry Schein.