8-KRegulation FDOther EventsExhibits & Filings

CARDINAL HEALTH INC 8-K Report, Regulation FD Disclosure (Jul 26, 2007)

Filed July 26, 2007For Securities:CAH

Summary

This 8-K filing from Cardinal Health, Inc. (CAH) dated July 26, 2007, announces the resolution of a significant Securities and Exchange Commission (SEC) investigation concerning the company's financial reporting and disclosure practices. The company has reached a settlement with the SEC, agreeing to pay a civil penalty of $35 million. This amount was previously reserved by the company in prior quarters, mitigating a direct impact on current earnings. Importantly, Cardinal Health neither admitted nor denied the SEC's allegations as part of the settlement, which is still subject to court approval.

Key Highlights

  • 1Cardinal Health has settled an SEC investigation related to financial reporting and disclosure matters.
  • 2The company will pay a civil penalty of $35 million to the SEC.
  • 3The $35 million penalty was previously reserved by Cardinal Health in prior fiscal quarters.
  • 4The settlement requires Cardinal Health to retain an independent consultant to review certain company policies and procedures.
  • 5Cardinal Health is being enjoined from future violations of certain federal securities laws.
  • 6The U.S. Attorney's Office for the Southern District of New York has closed its related inquiry into the matter.
  • 7The settlement is subject to court approval.

Frequently Asked Questions

The main event is the announcement of Cardinal Health's settlement with the Securities and Exchange Commission (SEC) to resolve an investigation into financial reporting and disclosure matters. Additionally, the U.S. Attorney's Office has closed its related inquiry.

Cardinal Health will pay a $35 million civil penalty. However, this amount was already reserved by the company in previous quarters (ended June 30, 2005, and December 31, 2005), meaning it should not have a material impact on the current financial results.

No, as part of the settlement agreement approved by the SEC, Cardinal Health neither admitted nor denied the SEC's allegations.

In addition to the civil penalty, Cardinal Health is required to retain an independent consultant to review certain company policies and procedures and will be enjoined from future violations of specific federal securities laws. The settlement also requires court approval.