Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
EDNY Dismisses Securities Suit Against Henry Schein
- Client News
- August 3, 2021
Practices
Paul, Weiss won the dismissal, with prejudice, of a securities fraud lawsuit against our clients Henry Schein, Inc., a global distributor of medical and dental supplies and Steven Paladino, Henry Schein’s executive vice president and COO.
The lawsuit, filed in the Eastern District of New York, arose out of the disappointing financial performance of a new veterinary services company, Covetrus, Inc., which was formed in February 2019 when Henry Schein’s animal health business was spun off and merged with Vets First Choice. Plaintiffs alleged that statements in the registration statement for the spin-off transaction about the characteristics and strength of Henry Schein’s animal health business were false and misleading.
In his decision dismissing the claims, U.S. District Judge Gary R. Brown held that plaintiffs had failed to allege that any of the statements attributed to the Schein defendants were false, adding that there was not “so much as a factual scintilla” supporting the claim that either Schein defendant acted with scienter. The court also granted co-counsel’s motion to dismiss claims against the CFO of Covetrus, but denied the motion as to Covetrus and its president.
The Paul, Weiss team included litigation partner Richard Rosen, who argued the motion to dismiss.