Summary
Cencora, Inc. (COR) has filed an 8-K report to disclose a significant development regarding a previously disclosed stockholder derivative action. The Company announced an agreement, subject to court approval, to resolve the lawsuit captioned Lebanon County Employees’ Retirement Fund v. Steven H. Collis et al. This action, filed in December 2021, alleged breach of fiduciary duty related to the oversight of the Company's controlled substance diversion control programs. Following a mediation process, the parties reached an agreement in principle to settle all claims. If approved by the Court, this settlement would involve insurance carriers paying Cencora $111.3 million, offset by any attorneys' fees and litigation expenses awarded to the Plaintiffs' counsel. Importantly, the settlement includes no admission of liability by Cencora or its officers and directors, who expressly deny any wrongdoing. This filing details the steps taken, including the establishment of a Special Litigation Committee and the subsequent court orders, leading to this proposed resolution.
Key Highlights
- 1Cencora has reached an agreement to settle a stockholder derivative lawsuit concerning oversight of controlled substance diversion control programs.
- 2The settlement is contingent on court approval.
- 3If approved, insurance carriers will pay Cencora $111.3 million, minus attorneys' fees and litigation expenses.
- 4The settlement explicitly states no admission of liability by Cencora or its officers and directors.
- 5Defendants in the lawsuit expressly deny any wrongdoing.
- 6A Special Litigation Committee was established and conducted an investigation prior to the settlement agreement.
- 7The settlement process involved mediation and subsequent filing of a Stipulation and Agreement of Settlement with the court.