What is the status of the accounting litigation related to HBOC?

As of January 15, 2002, eighty-seven lawsuits have been filed. While some federal securities claims against McKesson have been dismissed by the court, others remain pending. The company is actively involved in managing these complex legal proceedings, with the ultimate outcome and potential financial impact still uncertain.

Are there any other significant legal issues facing McKesson?

Yes, McKesson is involved in several other legal matters, including antitrust actions filed by retail pharmacies, product liability claims related to diet drugs and latex gloves, and environmental matters stemming from former chemical businesses. Some of these have been settled, while others are ongoing.

Has the SEC investigation into McKesson concluded?

Yes, on January 3, 2002, McKesson was notified in writing by the Securities and Exchange Commission's Staff that its investigation of McKesson has been terminated, and no enforcement action with respect to McKesson has been recommended to the Commission.

MCK 8-K SEC Disclosure — Jan 24, 2002

Q: What is the primary purpose of this 8-K filing?

This filing's main purposes are to make generally available McKesson Corporation's third-quarter results for the period ended December 31, 2001, and to provide an update on significant legal proceedings in preparation for a proposed debt offering.

Summary

This 8-K filing by McKesson Corporation (MCK) on January 24, 2002, primarily serves to disseminate information regarding the company's third-quarter results for the period ended December 31, 2001, and to provide updated details on significant legal proceedings in connection with a proposed debt offering. The company is facing numerous lawsuits stemming from accounting improprieties identified in 1999 within its former Information Technology Business unit (formerly HBOC). These legal actions include federal securities litigation, derivative actions, ERISA claims, and state-level cases. While McKesson has seen some claims dismissed, many remain pending. Additionally, the company is involved in antitrust matters, product liability claims, and environmental litigation. The filing emphasizes that while the outcomes of these legal proceedings are uncertain and could potentially have a material adverse impact, McKesson is of the belief, based on current knowledge and legal counsel, that most will not have such an effect, with the notable exception of the accounting litigation where uncertainty remains regarding material adverse impact.

Key Highlights

1McKesson Corporation issued a press release on January 22, 2002, detailing its third-quarter results for the period ending December 31, 2001.
2The filing provides updated information on ongoing accounting litigation related to past revenue recognition issues within the former HBOC Information Technology Business unit.
3As of January 15, 2002, eighty-seven lawsuits have been filed against McKesson, HBOC, and associated officers/directors regarding the accounting improprieties.
4Significant progress has been made in the federal securities litigation, with some claims dismissed against McKesson, though others remain pending.
5McKesson has been actively managing various antitrust, product liability, and environmental matters, with some resolutions reached and others ongoing.
6The company notes that while most legal proceedings are not expected to have a material adverse effect, the accounting litigation's outcome remains uncertain regarding its potential impact on financial position, results of operations, and cash flows.

MCKESSON CORP 8-K Report (Jan 24, 2002)

Summary

Key Highlights

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