McKesson Corp., a provider of supply, information and care management products, will pay $18.5 million to settle a lawsuit brought by employees who participated in its profit-sharing investment plan.
U.S. District Judge Ronald Whyte in San Jose, Calif., gave preliminary approval of the settlement Friday, said Ronald Kravitz, a lawyer for the employees. The case stems from McKesson's 1999 restatement of earnings after it said that HBO & Co., the software company it acquired that year, had prematurely booked $40 million in sales. The announcement led to a one-day drop in the company's stock that wiped out $8.6 billion in market value.
The employees' profit-sharing plan also will receive about $80 million from McKesson's separate $960-million settlement with shareholders that was approved by Whyte in February, Kravitz said. Larry Kurtz, a spokesman for McKesson, didn't immediately return a call seeking comment.