Express Scripts Faces Securities Class Action

WASHINGTON, D.C.–U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed on behalf of investors who purchased Express Scripts Holding Company (“Express Scripts” or the “Company”) (NASDAQ: ESRX) securities between February 24, 2015 and March 21, 2016, inclusive (the “Class Period”). Express Scripts investors have until July 5, 2016 to file a lead plaintiff motion.
The Allegations Against Express Scripts
On January 12, 2016, Anthem, Inc. (“Anthem”) openly threatened to end its relationship with Express Scripts unless the Company conceded to renegotiating its agreement with Anthem and transfer more than $3 billion in annual savings to Anthem.
Then, on March 21, 2016, Anthem filed suit against Express Scripts, asserting that the Company violated its contract with Anthem by failing to negotiate drug pricing terms in good faith. More specifically, the lawsuit alleges that Express Scripts was experiencing serious operational problems that impaired its ability to sufficiently serve Anthem, and left Anthem vulnerable to heightened regulatory scrutiny.
Despite previous claims by Express Scripts that their relationship with Anthem was “very, very solid,” the Anthem lawsuit reveals a conflict between Express Scripts and Anthem going back to at least February 2015. On news of the alleged discord, and loss of future Anthem revenues, the Company’s shares fell sharply in value.
According to the lawsuit on behalf of investors, Express Scripts, throughout the Class Period, repeatedly assured investors that its relationship with Anthem remained strong and that it was providing Anthem and all of its customers with high quality services. Express Scripts also touted that its finances and operations were performing at a high level. Additionally, Express Scripts addressed its ongoing drug pricing negotiations with Anthem and its commitment to reaching a mutually beneficial agreement and continuing its successful working relationship with Anthem. The lawsuit claims that when the true fact entered the market, the value of Express Scripts shares fell, damaging investors.
Express Scripts Shareholders Have Legal Options
If you suffered a loss in Express Scripts you have until July 5, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney David P. Abel (202) 559-8591, dabel@usmarketlaw.com.
U.S. Market Advisors Law Group PLLC is a law firm based in Washington, D.C. The firm represents institutional investors from across the world in U.S. securities class action lawsuits.
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