8-KEarnings & ResultsRegulation FDExhibits & Filings

Cencora, Inc. 8-K Report, Financial Results (Aug 3, 2017)

Filed August 3, 2017For Securities:COR

Summary

This 8-K filing from Cencora, Inc. (formerly AmerisourceBergen Corporation) on August 3, 2017, primarily announces the company's financial results for the fiscal quarter ended June 30, 2017, and provides crucial updates regarding a significant legal settlement. Investors should note the company's quarterly performance, detailed in a press release furnished with this filing. More importantly, the filing discloses an agreement in principle with the U.S. Attorney's Office for the Eastern District of New York (USAO-EDNY) to resolve a criminal investigation related to its subsidiary, Medical Initiatives, Inc. This agreement involves a $260.0 million payment and a guilty plea to a misdemeanor offense, for which the company has already recorded a litigation reserve. The company also indicates ongoing discussions regarding potential civil claims under the False Claims Act, the outcome of which remains uncertain and could materially impact the business.

Key Highlights

  • 1Cencora (then AmerisourceBergen) reported its financial results for the fiscal quarter ended June 30, 2017, via a press release.
  • 2The company reached an agreement in principle to resolve a criminal investigation with the U.S. Attorney's Office for the Eastern District of New York (USAO-EDNY).
  • 3As part of the agreement, a subsidiary will pay $260.0 million and plead guilty to a strict liability misdemeanor offense related to Medical Initiatives, Inc.'s failure to register with the FDA.
  • 4The company has recorded a $260.0 million litigation reserve for this settlement.
  • 5The USAO-EDNY intends to pursue alleged civil claims under the False Claims Act, with discussions ongoing and an uncertain outcome.
  • 6The company is unable to estimate a range of loss for the potential civil claims and will vigorously defend itself if litigation proceeds.

Frequently Asked Questions

The most significant event is the agreement in principle reached with the U.S. Attorney's Office for the Eastern District of New York (USAO-EDNY) to resolve a criminal investigation concerning its subsidiary, Medical Initiatives, Inc. This involves a $260.0 million payment and a guilty plea to a misdemeanor offense.

The company has recorded a litigation reserve of $260.0 million in connection with the agreement in principle. This amount will be paid by its subsidiary, ABSG.

Yes, the USAO-EDNY has indicated it intends to pursue alleged civil claims under the False Claims Act. Discussions are ongoing, but the outcome is uncertain, and the company cannot estimate a range of loss for this potential civil matter.

The company announced its earnings for the fiscal quarter ended June 30, 2017, on August 3, 2017, via a press release that was furnished with this 8-K filing. A conference call and webcast were also scheduled for that date.