In re Henry Schein, Inc. Securities Litigation

Court: United States District Court for the Eastern District of New York
Case Number: 1:18-cv-01428
Judge: U.S. District Court Judge Margo K. Brodie / U.S. Magistrate Judge Vera M. Scanlon
Class Period: 03/07/2013 - 02/12/2018
Case Contacts: James A. Harrod, Michael Mathai

This is a securities fraud class action filed on behalf of a class of all persons and entities who purchased or otherwise acquired common stock of Henry Schein, Inc. (“Henry Schein” or the “Company”) from March 7, 2013 through February 12, 2018, inclusive (the “Class Period”).

Henry Schein, based in Melville, New York, is one of the largest distributors of dental supplies and equipment in the United States.

In this action, Lead Plaintiff alleges that Defendants made false and misleading statements and material omissions about Schein’s North American Dental business, including the operation of that business in a competitive environment and the sources of the dental business’s financial success. Lead Plaintiff alleges that these misstatements inflated the price of Schein’s common stock during the Class Period and that the price declined when several private collusion lawsuits and a Federal Trade Commission action revealed to investors that Defendants had allegedly sought to reduce competition by entering into agreements to refuse to provide discounts to or compete for the business of groups of independent dentists, rather than compete based on price. Lead Plaintiff also alleged that, as a result of these lawsuits, Schein ceased to engage in the allegedly collusive behavior and that the cessation adversely affected the Company’s publicly reported financial results. Defendants have denied those allegations.

Lead Plaintiff Has Reached a Proposed Settlement for $35 Million

The Court-appointed Lead Plaintiff Miami General Employees’ & Sanitation Employees’ Retirement Trust (“Lead Plaintiff”), on behalf of itself and the Class, has reached a proposed settlement of the Action for $35,000,000 in cash that, if approved, will resolve all claims in the Action (the “Settlement”).

If you are a member of the Class, your rights will be affected and you may be eligible for a payment from the Settlement. The Class consists of:

all persons and entities who purchased or otherwise acquired Schein common stock during the period from March 7, 2013 through February 12, 2018, inclusive (the “Class Period”) and who were damaged thereby. Excluded from the Class are certain persons and entities who are excluded by definition (see paragraph 23 of the Notice) or who request exclusion pursuant to the instructions set forth in the Notice (see paragraphs 74-77 of the Notice).

Please read the Notice to fully understand your rights and options.  Copies of the Notice and Claim Form can be found on the Case Documents page.  You may also visit the Settlement website, HSICSecuritiesLitigation.com, for more information about the Settlement.
 
If you are a member of the Class, in order to be potentially eligible to receive a payment under the proposed Settlement, you must submit a Claim Form postmarked no later than September 2, 2020.  
 
Payments to eligible claimants will be made only if the Court approves the Settlement and a plan of allocation, and only after any appeals are resolved, and after the completion of all claims processing.  Please be patient, as this process will take some time to complete.
 

IMPORTANT DATES AND DEADLINES

September 2, 2020

Claim Filing Deadline. Claim Forms must be postmarked no later than September 2, 2020 to be eligible for a payment from the Settlement.

August 26, 2020

Exclusion Deadline. To exclude yourself from the Class, you must submit a written request for exclusion so that it is received no later than August 26, 2020, in accordance with the instructions in the Notice.

August 26, 2020

Objection Deadline. Any objections to the proposed Settlement, the proposed Plan of Allocation, and/or the motion for attorneys’ fees and expenses, must be submitted or filed no later than August 26, 2020, in accordance with the instructions in the Notice.

September 16, 2020
at 11:00 a.m.

Settlement Hearing.  The Settlement Hearing will be held September 16, 2020 at 11:00 a.m., before the Honorable Margo K. Brodie, either in-person at the United States District Court for the Eastern District of New York, 225 Cadman Plaza East, Brooklyn, NY 11201, Courtroom 6F, or by telephone.  The Settlement Hearing will be held by the Court to consider, among other things, whether the proposed Settlement is fair, reasonable and adequate and should be approved; whether the proposed Plan of Allocation is fair and reasonable and should be approved; and whether Lead Counsel’s motion for attorneys’ fees and expenses and Lead Plaintiff’s motion for costs and expenses should be approved.


Background

On February 12, 2018, the Federal Trade Commission (“FTC”) announced that it filed a complaint against Henry Schein and two of the nation’s other largest distributors of dental products alleging violations of the U.S. antitrust laws.  The FTC’s complaint detailed communications between executives of Henry Schein and its conspirators evidencing the agreement, as well as attempts to monitor and ensure compliance with the agreement.  The disclosure of the FTC complaint caused the price of Henry Schein stock to decline from approximately 7%, to $67.39 per share.

On June 22, 2018, Magistrate Judge Vera M. Scanlon appointed City of Miami General Employees’ & Sanitation Employees’ Retirement Trust to as Lead Plaintiff and Bernstein Litowitz Berger & Grossmann LLP as Lead Counsel, and on September 14, 2018 Lead Plaintiffs filed their Consolidated Class Action Complaint for Violations of the Federal Securities Laws.

Defendants served their Motion to Dismiss on December 10, 2018, and Lead Plaintiff served its Opposition on January 23, 2019. Defendants’ Motion to Dismiss briefing completed on February 22, 2019. On September 27, 2019, the Court denied, in part, Defendants’ Motion to Dismiss.

On April 30, 2020, the parties reached a proposed $35 million settlement. The proposed settlement is subject to Court approval. A hearing has been scheduled for September 16, 2020 to consider final approval of the Settlement and related matters.

 

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