[medinformatics] McKesson Settles Class Action Suit

[Medical Informatics News]

According to Reuters, McKesson Corporation (NYSE:
MCK) will have to pay $960 million
to settle a class-action shareholder lawsuit that arose from an alleged accounting fraud at a healthcare information
technology company,

HBO & Co., which McKesson acquired in 1999.


Reportedly, shortly after the acquisition, McKesson had to restate its financial results for improper accounting.
Several former HBO & Co. executives were accused of accounting fraud, including four that pleaded guilty to
charges, and several senior McKesson executives were ousted.


Although McKesson was not the subject of any civil or criminal complaint from government authorities, the firm’s
shares plummeted, with the current share price about a third of what it was before the merger.

http://medicalinformatics.weblogsinc...4000650027782/