McKesson Corp. (NYSE: MCK), a San Francisco health services company, has announced the preliminary settlement of the securities class action pending against the company in the N.D. of Cal. The case was based on the discovery of accounting improprieties at HBO & Co., an Atlanta-based health-care software business that had been acquired by McKesson in January 1999. The settlement is for $960 million. According to Securities Litigation Watch, this will be the fifth largest settlement of a securities class action ever.
The Recorder has an article (via law.com - free regist. req'd) on the settlement. The McKesson securities litigation has a long history, with a number of interesting court decisions. A couple of years ago, The 10b-5 Daily posted about McKesson's attempt to file a counterclaim against former HBOC shareholders for unjust enrichment.