Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) has filed an 8-K report detailing a preliminary civil settlement agreement related to a pending lawsuit. Two of its business units, International Nephrology Network (INN) and ASD Specialty Healthcare, Inc., were defendants in a qui tam action concerning alleged violations of civil false claims acts. The settlement, reached with the United States Attorney's Office, plaintiff states, and the relator (a former Amgen Inc. employee), is subject to finalization and court approval, expected in fiscal year 2012. This preliminary settlement will result in an approximate $16 million charge against Cencora's earnings for the fourth quarter and full year ended September 30, 2011. Importantly, this charge was not anticipated in the company's previously issued guidance for fiscal year 2011 diluted earnings per share ($2.52 to $2.56). Investors should note that the company does not expect INN or ASD to admit any liability as part of this settlement.
Key Highlights
- 1Cencora, Inc. reached a preliminary civil settlement agreement for a lawsuit involving its subsidiaries INN and ASD Specialty Healthcare.
- 2The lawsuit was filed under the qui tam provisions of federal and state civil false claims acts.
- 3The settlement is with the United States Attorney's Office, plaintiff states, and the relator.
- 4The settlement is preliminary and requires a final executed agreement and court approval, expected in fiscal year 2012.
- 5Cencora will record an approximate $16 million charge to earnings in the fourth quarter and full year ended September 30, 2011, due to this settlement.
- 6This $16 million charge was not factored into the company's previous fiscal year 2011 EPS guidance of $2.52-$2.56.
- 7The company anticipates that neither INN nor ASD will admit liability in connection with the settlement.