HGT Law Settles Derivative Lawsuit Against Directors And Officers Of McKesson Corporation For Its Role In National Opioid Epidemic

On April 22, 2020, the Honorable Claudia Wilken, United States District Judge for the Northern District of California, issued a final judgment and order approving the settlement of In re McKesson Corporation Derivative Litigation, No. 4:17-cv-01850-CW (N.D. Cal.). As previously announced (see here), HGT Law had commenced a shareholder derivative lawsuit on behalf of the shareholders of McKesson Corporation (“McKesson” or the “Company”) against various McKesson directors and officers for abdicating their fiduciary duty of oversight with respect to the Company’s sale of opioid drugs and controlled substances.

Under the settlement, Defendants will pay $175 million to the Company.  McKesson will also implement certain corporate governance reforms, including appointing a Chairman of the Board who is not a Company executive, adopting 12-year term limits for Board members, and reforming the Compliance Committee (which was formed to assist the Board in overseeing the Company’s compliance programs, and management’s identification and evaluation of the principal legal and regulatory compliance risks facing the Company).

A copy of Judge Wilken’s judgment can be found here, and a copy of the Stipulation and Agreement of Compromise, Settlement, and Release can be found here.

For more information about the McKesson action or any of our other cases, please contact us at (646) 453-7288 or via email at info@hgtlaw.com.