McKesson Corporation Will Pay Shareholders More Than $140 Million In Drug Pricing Case
According to reporting from Reuters, McKesson Corporation—a healthcare company with a main headquarters in Irving, Texas—will pay approximately $140 million to resolve a lawsuit brought by shareholders in a drug pricing case. The preliminary agreement still requires court approval. Here, our Miami shareholder dispute attorney highlights the key things to know about the lawsuit.
Background: McKesson Corporation Accused of Generic Drug Price Fixing
The shareholder lawsuit was filed against McKesson Corporation based on allegations that the company was involved in a complex drug price fixing scheme. The McKesson Corporation was far from the only drug maker accused of misconduct. There was an industry-wide generic drug pricing issue being probed by state and federal regulators. Shareholders contend that corporate executives improperly concealed the extent to which the company was implicated in the matter.
Without admitting or denying any wrongdoing in the case, the McKesson Corporation has agreed to settle the class action shareholder lawsuit for more than $140 million. The specific cause of action in the lawsuit was that the corporation improperly led investors to believe that generic drug price increases were caused by supply chain problems rather than illegal price fixing. The shareholder settlement still needs to be approved by a federal court in California.
Shareholders Have Options to Hold a Corporation (or its Executives) Responsible
By definition, a minority shareholder has very limited control over how a corporation operates. Shareholders are forced to put their faith—and their investment—into the hands of corporate officers and directors. A shareholder cannot bring a successful claim simply because a corporate officer or director made the “wrong” decision. However, shareholders do have legal options to hold a corporation and/or its leadership legally liable in certain circumstances. For example, shareholders may assert claims against a corporation or its officers/directors for:
- Breach of fiduciary duty;
- Waste of corporate assets;
- Improper self-dealing;
- Securities fraud; and
- Other violations of state or federal laws
It is important to remember that the law generally favors giving corporate officers and directors broad discretion in how they run a corporation. To prevail in a direct shareholder lawsuit or in a shareholder derivative action, a shareholder (or class of shareholders) must be prepared to present strong and convincing evidence that establishes the improper and/or unlawful conduct of the corporation or its leadership. The sooner you have legal representation in a shareholder dispute, the better position you will be in to secure justice and compensation for your damages.
Consult With Our Miami Shareholder Dispute Lawyer Today
At Pike & Lustig, LLP, our Miami shareholder litigation lawyers have the professional skill that you can trust. We have experience handling a wide range of shareholder matters. If you have questions about rights or your legal options, our legal team is ready to get working on your case. Call us now for a confidential consultation. We handle shareholder disputes throughout Miami-Dade County, including in Miami, Miami Beach, Hialeah, Homestead, Kendall, Doral, and Miami Gardens.