NEW YORK (Legal Newsline) - A Florida firefighters pension fund is suing an independent pharmacy benefit manager and several of its chief officers, alleging they misled investors.
The Melbourne Municipal Firefighters' Pension Trust Fund, individually and for all others similarly situated, filed a class action lawsuit May 4 in U.S. District Court for the Southern District of New York against Express Scripts Holding Company, George Paz, Timothy Wentworth, Eric Slusser, David Queller, and James M. Havel, alleging violations of federal securities laws.
The suit alleges between Feb. 24, 2015 and March 21, 2016, the defendants misled investors about its relationship with its most important client, Anthem Inc., one of the largest health benefits companies in the country, which represents approximately 14 percent of Express Scripts's annual revenues.
According to the complaint, Express Scripts repeatedly assured investors that its relationship with Anthem remained strong, that it was performing at a high level financially and operationally, and that it was committed to reaching a mutually beneficial agreement with Anthem over their ongoing drug pricing negotiations.
On March 21, Anthem sued Express Scripts over allegations it breached its contract with Anthem by failing to negotiate drug pricing terms in good faith. The suit alleges an undisclosed conflict between Express Scripts and Anthem dating back to at least February 2015.
As a result, the price of Express Scripts shares fell, damaging investors, the suit says.
The firefighters pension trust fund and others in the class seek a jury trial, compensatory damages, equitable and injunctive relief, attorney fees and costs. They are represented by attorneys Gerald H. Silk and Avi Josefson of Bernstein Litowitz Berger & Grossmann in New York.
U.S. District Court for the Southern District of New York Case number 1:16-CV-03338-KMW