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Federal District Court upholds breach of fiduciary duty claims against Cardinal Health, Inc.'s board of directors in connection with suspicious sales of controlled substance pharmaceuticals
February 08, 2021
Gardy & Notis, LLP is lead counsel for investors suing certain current and former members of the board of directors of Cardinal Health, Inc. for breaching their fiduciary obligations in failing to monitor suspicious sales of controlled substance pharmaceuticals and report suspicious sales as required by the Controlled Substances Act.


The case is a stockholder derivative case alleging that the directors have known since at least 2007 that Cardinal Health's sales and reporting practices violated the Controlled Substances Act and settlement agreements with government entities, including failing to implement an effective monitoring program to address and rectify the known problems. The directors then failed to take needed action after being repeatedly warned by government regulators and informed by internal company audits that Cardinal Health failed to implement or maintain an effective program to monitor suspicious orders of opioids being distributed.


On February 8, 2021, the United States District Court for the Southern District of Ohio issued an Opinion and Order denying the defendants' motion to dismiss in part and upholding allegations that the current and former directors breached their fiduciary obligations and harmed Cardinal Health.


The case is In re Cardinal Health, Inc. Derivative Litigation, No. 19-cv-2491, in the United States District Court for the Southern District of Ohio.


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