Gardy & Notis, LLP is a court appointed lead counsel for stockholders suing certain current and former members of the board of directors of Cardinal Health, Inc. for breaching their fiduciary obligations in failing to monitor and report suspicious sales of prescription opioids as required by the Controlled Substances Act.
Stockholders alleged that the directors knew since at least 2007 that Cardinal Health's sales and reporting practices violated the Controlled Substances Act and failed to implement an effective monitoring program to address and rectify the known problems. As a result, Cardinal Health faced DEA enforcement actions and entered into multiple settlement agreements and consent orders with the DEA. Despite the agreements, the directors continued to ignore repeated warnings from government regulators and still failed to implement or maintain an effective program to monitor suspicious orders of opioids, causing financial harm to Cardinal Health.
After nearly three years of litigation, Gardy & Notis, LLP achieved a $124 million settlement that is one of the largest-ever recoveries in a “Caremark" failure of oversight case and one of the largest derivative recoveries ever on behalf of an Ohio corporation.
The case is In re Cardinal Health Inc. Derivative Litigation, No. 2:19-cv-2491, in the United States District Court for the Southern District of Ohio, Eastern Division.