T 201 567 7377
F 201 567 7337
T 212 905 0509
F 212 905 0508

info@gardylaw.com 560 Sylvan Avenue
Englewood Cliffs, NJ 07632
Tower 56
126 East 56th Street
New York, NY 10022

News


Federal District Court upholds breach of fiduciary duty claims against McKesson Corporation's board of directors and other corporate insiders in connection with suspicious sales of controlled substance pharmaceuticals
May 24, 2018
Gardy & Notis, LLP is lead counsel for investors suing the board of directors of McKesson Corporation and other corporate insiders 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 McKesson's directors have known since at least 2008 that the company's sales and reporting practices violated the Controlled Substances Act and settlement agreements with government entities, including failing to implement an effective Controlled Substantive Monitoring Program (CSMP) to address and rectify the known problems. McKesson's directors then failed to take needed action after being repeatedly warned by government regulators and informed by internal company audits that the CSMP was not properly implemented or maintained.

On May 14, 2018, Judge Claudia Wilken of the United States District Court for the Northern District of California issued an Order denying the defendants' motion to dismiss and upholding allegations that McKesson's board of directors and other corporate insiders breached their fiduciary obligations and committed corporate waste.

The case is In re McKesson Corporation Derivative Litigation, No. 17-cv-1850, in the United States District Court for the Northern District of California.

Back to News Article List...
All contents copyright Gardy & Notis, LLP. All rights reserved

Attorney Advertising

Web Design - DreamingCode