Federal Contractor Misconduct Database (FCMD)
McKesson/HBOC, Inc. Securities Litigation
In January 2005, McKesson reached an agreement to settle a consolidated securities class action arising out of the discovery in April 1999 of accounting improprieties at HBO & Co., Inc. (HBOC), which McKesson acquired in January 1999. The improprieties turned out to be part of a long-running scheme at HBOC to fraudulently inflate revenue and net income, a scheme for which several former HBOC executives pled guilty. Under the agreement, McKesson agreed to pay the class members a total of $960 million in cash.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Settlement