McKesson Agrees to Settle Securities Fraud Litigation for $141 Million
No one admits wrongdoing including the company’s former top executive officers.
November 2, 2022
Healthcare services firm McKesson (MCK) has agreed to settle a lawsuit accusing the company and two former officers of reporting fraudulent revenue and profits between 2013-17. The suit alleges McKesson and former CEO John Hammergren and CFO James Beer engaged in an undisclosed conspiracy to fix the prices of generic drugs.
In October 2022, McKesson agreed to settle the suit for approximately $141 million.
The amount, according to McKesson, is covered in full by the company’s insurance policy.
The settlement includes no admission of liability. The company and former executives deny any wrongdoing.
The loss and expected insurance recovery have both been recognized on the balance sheet ended September 30, 2022.
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