Cardinal Health, Dublin, Ohio, set aside $25 million in its fiscal year ended June 30 in anticipation of settling a Securities and Exchange Commission investigation of the drug distributor's accounting methods, according to a regulatory filing. The investigation includes Cardinal's treatment of rebates from vitamin manufacturers, revenue classification in drug distribution and compensation information for some current and former employees. The U.S. attorney for the Southern District of New York is investigating similar accounting issues. As a result of the investigations, Cardinal previously restated its financial statements for three years. The company said it cannot be certain that $25 million will settle the matter until the SEC investigation is resolved and will review the reserve on a quarterly basis. -- by Cinda Becker
Cardinal reserves $25 million to resolve SEC probe
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