Summary
McKesson Corporation (MCK) filed an 8-K report on September 29, 2005, detailing significant developments in ongoing litigation. The most crucial update for investors is the preliminary approval granted by the court on September 28, 2005, for the settlement of the "In re McKesson HBOC, Inc. Securities Litigation" in the Northern District of California. This preliminary approval sets a date for a final approval hearing on January 27, 2006. Additionally, the filing reports that on September 9, 2005, the same court granted final approval to a separate settlement resolving claims related to the Employee Retirement Income Security Act ("ERISA") on behalf of former participants of the HBO & Company Profit Sharing and Savings Plan. While most ERISA claims were settled, the court partially denied McKesson's motion to dismiss remaining claims, allowing a specific claim concerning company stock contributions to the McKesson Profit-Sharing Investment Plan for the fiscal year ended March 31, 1999, to proceed.
Key Highlights
- 1Preliminary court approval received for the settlement of the "In re McKesson HBOC, Inc. Securities Litigation" on September 28, 2005.
- 2A final approval hearing for the securities litigation settlement is scheduled for January 27, 2006.
- 3Final approval granted on September 9, 2005, for the settlement of ERISA claims related to the HBO & Company Profit Sharing and Savings Plan.
- 4The company's motion to dismiss remaining ERISA claims was partially granted, with one claim proceeding.
- 5The remaining ERISA claim involves allegations of breach of fiduciary duty regarding company stock contributions to the McKesson Profit-Sharing Investment Plan for the fiscal year ended March 31, 1999.
- 6McKesson has not yet filed an answer to the complaint for the remaining ERISA claim.