An investor in NASDAQ:ESRX shares against Express Scripts Holding Company over alleged violations of Federal Securities Laws.
Investors who purchased shares of Express Scripts Holding Company (NASDAQ:ESRX) have certain options and for certain investors are short and strict deadlines running. Deadline: July 5, 2016. NASDAQ:ESRX investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
Express Scripts Holding Company’s most important client is Anthem, Inc. (“Anthem”), one of the largest health benefits companies in the United States, which represents approximately 14% of Express Scripts Holding Company’s annual revenues. Pursuant to Express Scripts Holding Company’s contract with Anthem, Anthem may periodically conduct a market analysis to ensure that Anthem is receiving “competitive benchmark pricing” on drugs purchased through plans administered by Express Scripts Holding Company. If Anthem determines that the pricing terms under the agreement with Express Scripts Holding Company are no longer market competitive, then Anthem may propose new pricing terms to ensure that Anthem is receiving competitive benchmark pricing, and Express Scripts Holding Company is obligated to negotiate in good faith over the proposed new pricing terms.
The plaintiff alleges on behalf of purchasers of Express Scripts Holding Company (NASDAQ:ESRX) common shares between February 24, 2015 and March 21, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 24, 2015 and March 21, 2016 Express Scripts Holding Company repeatedly assured investors that its relationship with Anthem remained strong and that it was providing Anthem, and all of its customers, with high quality service. The plaintiff says that Express Scripts Holding Company also touted that it was performing at a high level financially and operationally and that Express Scripts Holding Company addressed the ongoing drug pricing negotiations with Anthem, stating that Express Scripts Holding Company was committed to reaching a mutually beneficial agreement, and continuing its successful working relationship with its most important client.
The plaintiff claims that as a result of these alleged misrepresentations, Express Scripts Holding Company stock traded at artificially inflated prices between February 24, 2015 and March 21, 2016.
On January 12, 2016, Anthem publicly threatened to terminate its relationship with Express Scripts Holding Company unless Express Scripts Holding Company would renegotiate its agreement with Anthem to deliver more than $3 billion in annual savings to Anthem.
Then, on March 21, 2016, Anthem sued Express Scripts Holding Company alleging that Express Scripts Holding Company breached its contract with Anthem by failing to negotiate drug pricing terms in good faith. The plaintiff says that that lawsuit revealed a conflict between Express Scripts Holding Company and Anthem dating back to at least February 2015, including allegations that Express Scripts Holding Company was experiencing severe operational problems that interfered with its ability to adequately serve Anthem and exposed Anthem to increased regulatory scrutiny and that investors learned that Anthem would almost certainly either renegotiate its contract to pay billions of dollars less to Express Scripts Holding Company, or worse, seek to engage a competing PBM resulting in the complete loss of Anthem’s business.
Shares of Express Scripts Holding Company (NASDAQ:ESRX) declined from over $94 per share in July 2015 to as low as $66.16 per share on March 22, 2016.
Those who purchased NASDAQ:ESRX shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com