Class Counsel announces proposed Settlement of Stockholder Class Action on Behalf of Former Holders of Covetrus, Inc. Securities

Rhea-AI Summary

Covetrus (Nasdaq: CVET) former stockholders are notified of a proposed $70,000,000 cash settlement resolving a Delaware Court of Chancery class action over the October 13, 2022 $21.00-per-share transaction.

The Settlement Hearing is April 13, 2026; objections are due March 20, 2026.

Positive

• $70,000,000 cash Settlement available for eligible former Covetrus holders
• Class members who received $21.00 per share on Oct 13, 2022 eligible for pro rata distribution

Negative

• Settlement is subject to Court approval at an April 13, 2026 hearing
• Objections to the Settlement or fee requests must be filed by March 20, 2026

Key Figures

Settlement amount: $70,000,000 Merger consideration: $21.00 per share Closing date: October 13, 2022 +3 more

6 metrics

Settlement amount $70,000,000 Proposed cash settlement of stockholder class action

Merger consideration $21.00 per share Cash paid for Covetrus common stock on October 13, 2022

Closing date October 13, 2022 Date shares were exchanged for $21.00 per share

Stipulation date January 29, 2026 Date of Stipulation and Agreement of Settlement

Settlement hearing April 13, 2026, 11:00 a.m. Scheduled hearing on settlement approval in Delaware Chancery Court

Objection deadline March 20, 2026 Deadline for filing objections to settlement and fee request

Market Reality Check

Vol: Reported volume is 0 shar...

normal vol

Volume Reported volume is 0 shares versus a 20-day average of 1,921,413, indicating no observable trading activity ahead of this legal settlement notice. normal

Technical Recorded price is 0 with a 200-day moving average of 18.83, limiting meaningful technical read-through versus this settlement announcement.

Peers on Argus

Healthcare distribution peers show mixed moves (e.g., HSIC at -1.26%, OMI at +2....

Healthcare distribution peers show mixed moves (e.g., HSIC at -1.26%, OMI at +2.19%), and no peers appeared in the momentum scanner, suggesting this Covetrus litigation settlement is stock-specific rather than a sector-driven event.

Market Pulse Summary

This announcement details a proposed $70,000,000 cash settlement for former Covetrus stockholders wh...

Analysis

This announcement details a proposed $70,000,000 cash settlement for former Covetrus stockholders whose shares were cashed out at $21.00 per share on October 13, 2022. It outlines the class definition, the Delaware Chancery Court hearing on April 13, 2026, and a March 20, 2026 objection deadline. Investors following this matter should focus on court approval of the settlement, the final plan of allocation, and the mechanics of distributing the net settlement fund to eligible class members.

Key Terms

plan of allocation, net settlement fund, pro rata

3 terms

plan of allocation financial

"determine whether the proposed Plan of Allocation of the Net Settlement Fund is fair"

A plan of allocation explains how money or securities from a settlement, offering, or corporate distribution will be divided among eligible recipients. It matters to investors because it shows who gets paid, how amounts are calculated, and what steps they must take to receive their share — like a recipe that turns a single pot of money into individual portions based on clear rules and proof of ownership.

net settlement fund financial

"the Net Settlement Fund will be distributed on a pro rata basis"

A net settlement fund is the pool of cash used by a clearinghouse or settlement system to pay the small number of net amounts that remain after all buy and sell obligations among traders are offset. Think of it as the communal checking account that covers the final balances once everyone's mutual debts are totaled; it matters to investors because it keeps daily trading orderly, reduces the chance of a failed trade, and lowers the risk that one participant’s shortfall disrupts the market.

pro rata financial

"will be distributed on a pro rata basis to Class Members"

Pro rata means dividing or distributing something proportionally based on a specific factor, such as ownership or contribution. For example, if an investor owns 10% of a company, they would receive 10% of any dividends or benefits allocated. This approach ensures everyone gets their fair share relative to their stake or input, helping investors understand how benefits, costs, or responsibilities are fairly shared.

AI-generated analysis. Not financial advice.

WILMINGTON, Del., Feb. 24, 2026 /PRNewswire/ --

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

BUCKS COUNTY EMPLOYEES' RETIREMENT SYSTEM, and OKLAHOMA LAW ENFORCEMENT RETIREMENT SYSTEM,                         Plaintiffs,             v. CLAYTON, DUBILIER & RICE, LLC, CD&R VFC HOLDINGS, L.P., CD&R INVESTMENT ASSOCIATES IX, LTD., RAVI SACHDEV, and SANDRA PETERSON,                         Defendants.

C.A. No. 2023-1151-LWW

SUMMARY NOTICE OF PENDENCY OF STOCKHOLDER CLASS ACTION AND PROPOSED SETTLEMENT, SETTLEMENT HEARING,
AND RIGHT TO APPEAR

TO: All record holders and beneficial owners of common stock of Covetrus, Inc. ("Covetrus") (Nasdaq: "CVET") whose shares were exchanged for $21.00 per share in cash on October 13, 2022.

PLEASE READ THIS SUMMARY NOTICE CAREFULLY. YOUR RIGHTS WILL BE AFFECTED BY A CLASS ACTION LAWSUIT PENDING IN THIS COURT.

YOU ARE HEREBY NOTIFIED, pursuant to an Order of the Court of Chancery of the State of Delaware (the "Court"), that the above-captioned stockholder class action (the "Action") is pending in the Court.

YOU ARE ALSO NOTIFIED that Plaintiffs Bucks County Employees' Retirement System and Oklahoma Law Enforcement Retirement System (collectively, "Plaintiffs"), individually and on behalf of the Class, have reached a proposed settlement with defendants Clayton Dubilier & Rice, LLC, CD&R VFC Holdings, L.P., CD&R Investment Associates IX, Ltd., Ravi Sachdev, and Sandra Peterson (collectively, "Defendants") for $70,000,000 in cash (the "Settlement"). The terms of the Settlement are stated in the Stipulation and Agreement of Settlement, Compromise, and Release between Plaintiffs, Defendants and Covetrus, dated January 29, 2026 (the "Stipulation"), a copy of which is available at www.CovetrusStockholderLitigation.com. If approved by the Court, the Settlement will resolve all claims in the Action as against Defendants.

A hearing (the "Settlement Hearing") will be held on April 13, 2026 at 11:00 a.m., before The Honorable Lori W. Will, Vice Chancellor, either in person at the Court of Chancery of the State of Delaware, New Castle County, Leonard L. Williams Justice Center, 500 North King Street, Wilmington, Delaware 19801, or remotely by Zoom (in the discretion of the Court), to, among other things: (i) determine whether the Action may be finally maintained as a non-opt-out class action and whether the Class should be finally certified, for purposes of the Settlement, pursuant to Court of Chancery Rules 23(a), 23(b)(1), and 23(b)(2); (ii) determine whether Plaintiffs may be finally appointed as the representatives for the Class and Plaintiffs' Counsel finally appointed as counsel for the Class, and whether Plaintiffs and Plaintiffs' Counsel have adequately represented the interests of the Class in the Action; (iii) determine whether the proposed Settlement on the terms and conditions provided for in the Stipulation is fair, reasonable, and adequate to the Class, and should be approved by the Court; (iv) determine whether a Judgment, substantially in the form attached as Exhibit D to the Stipulation, should be entered dismissing the Action with prejudice as against Defendants; (v) determine whether the proposed Plan of Allocation of the Net Settlement Fund is fair and reasonable, and should therefore be approved; (vi) determine whether the application by Plaintiffs' counsel for an award of attorneys' fees and expenses, and any incentive awards to Plaintiffs, should be approved; (vii) hear and rule on any objections to the Settlement, the proposed Plan of Allocation, and/or to the application by Plaintiffs' Counsel for an award of attorneys' fees and expenses, including any incentive awards to Plaintiffs; and (viii) consider any other matters that may properly be brought before the Court in connection with the Settlement. Any updates regarding the Settlement Hearing, including any changes to the date or time of the hearing or updates regarding in-person or remote appearances at the hearing, will be posted to the Settlement website, www.CovetrusStockholderLitigation.com. 

If you are a member of the Class, your rights will be affected by the pending Action and the Settlement, and you may be entitled to share in the Net Settlement Fund. If you have not yet received the Notice, you may obtain a copy of the Notice by contacting the Settlement Administrator at Covetrus Stockholder Litigation, c/o Settlement Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103. A copy of the Notice can also be downloaded from the Settlement website, www.CovetrusStockholderLitigation.com.

If the Settlement is approved by the Court and the Effective Date occurs, the Net Settlement Fund will be distributed on a pro rata basis to "Class Members in accordance with the proposed Plan of Allocation stated in the Notice or such other plan of allocation as is approved by the Court. Under the proposed Plan of Allocation, all Class Members who held or beneficially owned shares of Covetrus common stock at the Closing on October 13, 2022 and therefore received, or were entitled to receive, the Transaction Consideration for their "Eligible Shares" will be eligible to receive a pro rata payment from the Net Settlement Fund equal to the product of (i) the number of Eligible Shares held by the Class Member and (ii) the "Per-Share Recovery" for the Settlement, which will be determined by dividing the total amount of the Net Settlement Fund by the total number of Eligible Shares. As explained in further detail in the Notice, pursuant to the Plan of Allocation, payments from the Net Settlement Fund to Class Members will be made in the same manner in which Class Members received the Transaction Consideration. Class Members do not have to submit a claim form to receive a payment from the Settlement.

Any objections to the proposed Settlement, the proposed Plan of Allocation, or Plaintiffs' counsel's application for an award attorneys' fees and litigation expenses and any incentive awards to Plaintiffs in connection with the Settlement must be filed with the Register in Chancery in the Court of Chancery of the State of Delaware and delivered to Plaintiffs' counsel and Defendants' counsel such that they are received no later than March 20, 2026, in accordance with the instructions set forth in the Notice.

Please do not contact the Court or the Office of the Register in Chancery regarding this notice. All questions about this notice, the proposed Settlement, or your eligibility to participate in the Settlement should be directed to the Settlement Administrator or Plaintiffs' counsel.

Requests for the Notice should be made to the Settlement Administrator:

Covetrus Stockholder Litigation
c/o Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103

Inquiries, other than requests for the Notice, should be made to Plaintiffs' counsel:

Michael J. Barry
Rebecca A. Musarra
GRANT & EISENHOFER, P.A.
123 Justison Street
Wilmington, DE 19801
mbarry@gelaw.com 
rmusarra@gelaw.com 

Ned Weinberger
Michael C. Wagner
LABATON KELLER SUCHAROW LLP
222 Delaware Avenue, Suite 1510
Wilmington, DE 19801
nweinberger@labaton.com 
mwagner@labaton.com 

BY ORDER OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE

Dated: February 11, 2026

View original content:https://www.prnewswire.com/news-releases/class-counsel-announces-proposed-settlement-of-stockholder-class-action-on-behalf-of-former-holders-of-covetrus-inc-securities-302694715.html

SOURCE Labaton Keller Sucharow LLP

FAQ

What does the $70,000,000 proposed settlement mean for former Covetrus (CVET) holders?

It means eligible former Covetrus holders may receive a pro rata payment from a $70,000,000 fund. According to Covetrus, the Net Settlement Fund will be divided by the total Eligible Shares to determine a Per-Share Recovery and paid in the same manner as transaction consideration.

Who is eligible to receive payments from the Covetrus (CVET) settlement fund?

Eligible persons are holders who received $21.00 per share on October 13, 2022 in the transaction. According to Covetrus, Class Members who held Eligible Shares at the Closing are entitled to a pro rata share without submitting a claim form.

When and where is the Covetrus (CVET) settlement hearing scheduled?

The Settlement Hearing is scheduled for April 13, 2026 at 11:00 a.m. before the Delaware Court of Chancery. According to Covetrus, the hearing may be held in person or remotely by Zoom at the Court's discretion.

How do I object to the proposed Covetrus (CVET) settlement or fee request?

Objectors must file and serve objections so they are received by March 20, 2026. According to Covetrus, objections must be filed with the Register in Chancery and delivered to Plaintiffs' and Defendants' counsel per the Notice instructions.

How will the Covetrus (CVET) settlement payments be calculated and distributed?

Payments will be pro rata based on Eligible Shares and the Per-Share Recovery derived from the Net Settlement Fund. According to Covetrus, distributions will follow the proposed Plan of Allocation and be made in the same manner as original transaction consideration.