Lawsuit Filed Against McKesson HBOC, Inc. Over Alleged Securities Fraud

Strategic Insights -

Pursuers of McKesson HBOC, Inc.'s common stock between January 12, 1999 and April 27, 1999, as well as former stockholders of US Servis, IMNET Systems, Inc., and Access Health, Inc. who exchanged their shares for the company's inflated stock, are being represented in a lawsuit filed by Cohen, Milstein, Hausfeld & Toll, P.L.L.C. The law firm alleges that McKesson and certain officers and directors issued false and misleading statements, resulting in artificially inflated stock prices and significant financial losses for investors. The complaint charges violations of the Securities Exchange Act of 1934 and the Securities Act of 1933.

Key Takeaways:

  • The lawsuit, filed on April 29, 1999, seeks to represent the interests of purchasers of McKesson's common stock between January 12, 1999 and April 27, 1999, as well as former stockholders of US Servis, IMNET Systems, Inc., and Access Health, Inc.
  • The complaint alleges that McKesson and its officers and directors made false and misleading statements, resulting in artificially inflated stock prices and significant financial losses for investors.
  • The lawsuit asserts claims under the Securities Exchange Act of 1934 and the Securities Act of 1933.
  • Plaintiff's counsel, Cohen, Milstein, Hausfeld & Toll, P.L.L.C., has significant experience in prosecuting investor class actions and actions involving financial fraud.
  • The firm has offices in Washington, D.C. and Seattle and is active in major litigation pending in federal and state courts throughout the nation.

Statistics:

  • The Class Period, from July 13, 1998 through April 27, 1999, saw the common stock of McKesson artificially inflated, resulting in significant financial losses.
  • The price of McKesson's common stock is alleged to have been artificially inflated between January 12, 1999 and April 27, 1999.
  • The price of HBOC common stock was inflated between July 13, 1998 and January 12, 1999.
  • The complaint also asserts claims on behalf of the persons who formerly held stock in US Servis, IMNET Systems, Inc., or Access Health, Inc., who exchanged their shares for the inflated stock of HBOC.
  • The total recoveries for Cohen, Milstein, Hausfeld & Toll, P.L.L.C. in prior cases total hundreds of millions of dollars.

Sources:

  • Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (no date provided in the source material)
  • Securities Exchange Act of 1934 (no date provided in the source material)
  • Securities Act of 1933 (no date provided in the source material)