Summary
Cardinal Health Inc. (CAH) filed an 8-K on April 8, 2021, to disclose a temporary suspension of trading under its employee benefit plans. This "blackout period" is necessary due to the transition to a new recordkeeper for the Cardinal Health 401(k) Savings Plan. During this period, participants will be unable to conduct certain transactions, including changes to contributions, investment allocations, loan activities, and withdrawals or distributions. This event, effective for plan participants from May 20, 2021, to May 24, 2021, also imposes trading restrictions on the company's directors and executive officers concerning company stock and derivatives. While this event primarily impacts employee benefit plan participants and company insiders, it is important for investors to be aware of such administrative changes that temporarily restrict the ability of plan participants and insiders to transact in company stock. The company has provided a contact for obtaining more information on the blackout period dates.
Key Highlights
- 1Cardinal Health is implementing a temporary blackout period for its 401(k) Savings Plan, effective May 20-24, 2021.
- 2The blackout is due to a transition to a new plan recordkeeper.
- 3During the blackout, 401(k) participants cannot make changes to contribution rates, investment allocations, loans, or process withdrawals/distributions.
- 4This restriction also applies to the Cardinal Health Stock Fund held within the 401(k) plan.
- 5Company directors and executive officers are also subject to stock trading restrictions (including derivatives) during this period.
- 6The notice regarding the blackout period was formally provided to the company on April 6, 2021.