Summary
This 8-K filing by McKesson Corporation (MCK) on December 12, 2005, reports a new legal development concerning a previously announced settlement of a consolidated securities class action lawsuit related to the 1999 acquisition of HBO & Company, Inc. Bear Stearns & Co. Inc. has filed a complaint alleging that McKesson breached an engagement letter by entering into the settlement without providing a full release for Bear Stearns. Bear Stearns is seeking monetary damages and an injunction to prevent McKesson from proceeding with the settlement. The company maintains that Bear Stearns' claims are without merit and has stated it will vigorously oppose the lawsuit. This legal action by Bear Stearns was previously raised as an objection to the preliminary approval of the class action settlement but was rejected by the presiding judge. A hearing for final approval of the settlement is scheduled for January 27, 2006. Investors should monitor the outcome of this lawsuit and its potential impact on the class action settlement.
Key Highlights
- 1McKesson Corporation is facing a new lawsuit filed by Bear Stearns & Co. Inc.
- 2The lawsuit stems from McKesson's previously announced settlement of a consolidated securities class action.
- 3Bear Stearns alleges McKesson breached an engagement letter by not providing a full release in the settlement.
- 4Bear Stearns is seeking monetary relief and an injunction to block the settlement.
- 5McKesson believes the lawsuit is without merit and will vigorously defend itself.
- 6The objection raised by Bear Stearns was previously rejected by the judge overseeing the class action settlement.
- 7A final approval hearing for the class action settlement is scheduled for January 27, 2006.