McKesson Corp., San Francisco, lost $156.7 million, or 53 cents per share, in its fiscal year ended March 31, because of an $810 million after-tax charge to settle securities lawsuits. Revenue rose 15.8% to $80.5 billion. The company had net income of $646.5 million, or $2.19 per share, in the previous year. McKesson in January agreed to pay $960 million to settle a class action on behalf of stockholders and set aside an additional $240 million to cover suits brought independently by other stockholders. The civil suits followed a federal investigation into accounting practices at HBO & Co., which McKesson acquired in 1999. The bench trial of former McKesson Chief Financial Officer Richard Hawkins ended March 11, and a verdict is pending. Of the six HBO & Co. executives indicted in the investigation, four await sentencing after pleading guilty and two await trial. -- by Joseph Conn
$810 million legal charge wipes out McKesson's profit
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