Boston, MA 04/09/2014 (wallstreetpr) – It has been a painful period for the pharmacy services and retailer CVS Caremark Corporation (NYSE:CVS). The company suffered reputation damage as its faithfulness to investors and accounting practices came under the microscope. However, the company announced that issues relating to its questionable accounting and improper reporting have been fully resolved.
It, therefore, means that the company can now channel its attention and resources to boosting operations. But a lot of work will be needed to clean the image of CVS.
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Even as regulators accused it of misleading investors through improper reporting and faulty accounting habits, CVS Caremark Corporation (NYSE:CVS) neither admitted nor denied wrongdoing. But it eventually agreed to meet the fine. The company will pay $20 million in relation to its sins as discovered by Securities Exchange Commission (SEC).
The issues that nailed the company occurred in 2009 in the third and fourth quarters. By manipulating facts, the company is reported to have ended up with artificially boosted financial results, thus misleading investors about its true business health.
The regulators also took issues with the company’s controller of retail operations, Laird Daniels. SEC said that the executive performed importer accounting relating to the acquisition of Longs Drugs in 2008.
Eye on the future
With the regulatory issue currently out, CVS Caremark Corporation (NYSE:CVS) is looking to increasing its market share through improved marketing activities. The company is also adjusting its costs and expenses to ensure that revenue growth trickles to boost the bottom line.
The company is looking to increase investment in high-growth areas while adjusting presence in high-cost regions. Introduction of new pharmacy benefit solutions is also on the cards as the company seeks to stay ahead of the competition with cutting-edge technology.
The anticipated boom in the healthcare is expected to boost healthcare stocks and CVS Caremark Corporation (NYSE:CVS) believes that it will be able to partake in the benefits when they come.
The company provides pharmacy services and also operates location and online pharmacy retail stores.
