The agreement also includes increased corporate governance protections which separate the role of chief executive officer and board chairman. The money from the lawsuit comes from the director’s insurance policies and will go back into the company, Bloomberg reports.
Investors say that directors ignored “multiple red flags” about opioid distribution even when they had agreed to improve oversight because of another deal with the government. The settlement will also require two new independent directors and improved systems to flag suspicious orders, Bloomberg reports.
In addition to individual settlements around the country, McKesson is in negotiation about a national settlement with the states attorneys general and have offered $18 billion over 18 years, but the government suits are valued at $50 billion according to Bloomberg. The nationwide settlement would replace the numerous cases on the books now, including a Texas suit where Parkland Hospital and Health System is one of 58 plaintiffs.
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