Richard Miller, chief financial officer of drug distributor Cardinal Health, Dublin, Ohio, has left the company under a cloud of several federal investigations related to the company's financial reporting and accounting. Miller was replaced by J. Michael Losh, who retired from General Motors in 2000 as CFO and executive vice president. Losh has been a member of Cardinal's board of directors for eight years and will continue in that role. Cardinal said it is delaying the release of its fiscal 2004 financial results to late August or early September from July 28. Noting that some "financial reporting practices and judgments that occurred during my tenure as CFO have come under scrutiny in the ongoing investigations, I now believe it is in the best interests of the company for me to step aside," Miller said in a news release.
Cardinal disclosed in May that the Securities and Exchange Commission had launched a formal probe related to accounting of litigation recovery from vitamin manufacturers. In June, Cardinal announced that the SEC and the U.S. attorney's office in New York were separately investigating revenue classification related to bulk deliveries in Cardinal's drug distribution business. The company's audit committee and independent counsel also are conducting an ongoing review, officials said. Standard & Poor's placed Cardinal's rating on CreditWatch with negative implications based on the announcement. -- by Cinda Becker