Lead Plaintiff, Thomas P. DiNapoli, Comptroller of the State of New York, as Administrative Head of the New York State and Local Retirement Systems and as Trustee of the New York State Common Retirement Fund, achieved recoveries from defendants in the McKesson HBOC securities class action litigation (the “Litigation”) totaling in excess of $1.04 billion plus interest for the benefit of the Settlement Class. Pursuant to Orders of the Court approving the settlements achieved, the Litigation was resolved.
One of the settlements achieved (in 2006) was with defendant Arthur Andersen LLP (“Andersen”), HBO & Company’s outside auditor, for a cash payment of $72.5 million, as well as the possibility of certain contingent payments described in paragraph 2 below (the “Contingent Payment Claim”).
On November 28, 2012, Lead Plaintiff and defendant Andersen entered into a proposed settlement that, if approved, will settle and release the Contingent Payment Claim in return for the immediate payment by Andersen of an additional $9.5 million in cash (the “Settlement”). The effectiveness of this Settlement is contingent on its approval by the Court and the approval of a parallel proposed settlement by the Court in In re WorldCom, Inc. Securities Litig., Master File No. 02 Civ. 3288 (DLC), pending in the United States District Court for the Southern District of New York. Please refer to the Notice of Proposed Settlement. for details regarding this settlement.
Class Members who submitted valid claim forms, cashed their most recent distribution from the proceeds of the earlier settlements achieved in the Litigation, and who would be entitled to a minimum payment of $10.00 in the next distribution (which will include the proceeds of this Settlement, if approved), will be eligible to participate in the distribution of the proposed Settlement. There is no claim form to be submitted in connection with this proposed settlement.