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.