A class action lawsuit has been commenced in the United States District Court for the District of Rhode Island on behalf of purchasers of CVS Caremark Corporation ("CVS" or the "Company") (NYSE:CVS) stock during the period between May 5, 2009 and November 4, 2009, (the "Class Period") for violations of the federal securities laws.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period operating problems in the PBM business, which negotiates drug prices with drug manufacturers for companies and governments, the adverse impact the more than $6 billion in contractual losses for 2010 would have on its 2010 financial results. According to the complaint, CVS belatedly disclosed that the Federal Trade Commission ("FTC") had begun a "nonpublic investigation" in August 2009 into whether CVS's business practices and service offerings violated antitrust laws and that among the business practices of CVS that the FTC is reportedly investigating is the improper use of pricing and patient data from its retail pharmacy operations to steer its PBM members to CVS stores. Further, according to the complaint, after CVS issued a press release on November 5, 2009 announcing the disclosures of the adverse material facts concerning the PBM business and their adverse impact on CVS's financial results for 2010, and the FTC investigation, the value of CVS's stock declined significantly.