Settlement of the derivative action brought by G&E on behalf McKesson Corporation against the company’s current and former officers and directors has been approved in the U.S. District Court, Northern District of California. The $175 million settlement amounts to one of the largest derivative case settlements in history. In addition to the monetary recovery, the settlement provides for governance reforms designed to improve Board oversight and fix compliance failures at McKesson.
McKesson, as a distributor of pharmaceuticals, has had a significant role in the increase of opioid drug abuse in the United States. In 2008, the company entered into a settlement agreement with the government and paid a $13.5 million dollar fine. McKesson failed to implement and adhere to the terms of the agreement and in 2017, was hit with a record $150 million fine.
In 2017, G&E filed In re McKesson Corp Stockholder Derivative Litigation on behalf of a public pension system. The action filed in the Delaware Court of Chancery was stayed. The action in the Northern District of California remained in discovery while mediation was ongoing.