Summary
This 8-K filing from McKesson Corporation (MCK) on March 30, 2006, primarily concerns the final stages of a previously disclosed consolidated securities class action settlement, "In re McKesson HBOC, Inc. Securities Litigation". The company announced that it made its final payment of approximately $960.5 million into an escrow account, fulfilling its settlement obligations. However, a non-settling defendant, Bear, Stearns & Co., Inc. ("Bear Stearns"), has appealed the final judgment and dismissal order related to the settlement to the Ninth Circuit Court of Appeals. Bear Stearns' appeal challenges provisions that limit its ability to pursue future claims against McKesson and related parties. The company believes the appeal is without merit, but if successful, it could allow Bear Stearns to pursue certain claims that are otherwise barred by the settlement.
Key Highlights
- 1McKesson Corporation has made its final settlement payment of approximately $960.5 million in the "In re McKesson HBOC, Inc. Securities Litigation" class action.
- 2The payment has been deposited into an escrow account, fulfilling the company's obligations under the settlement agreement.
- 3Bear, Stearns & Co., Inc. (Bear Stearns), a non-settling defendant, has appealed the settlement's final judgment and dismissal order.
- 4Bear Stearns' appeal primarily targets provisions that restrict its ability to file future claims against McKesson and related entities.
- 5McKesson believes Bear Stearns' appeal is without merit, citing prior rejections by the district court.
- 6If Bear Stearns' appeal is successful, it could potentially pursue claims related to its conduct during McKesson's 1999 acquisition of HBOC that are currently barred by the settlement.
- 7The company expects to retain the benefits of the settlement, including releases from class members, regardless of the outcome of Bear Stearns' appeal.