McKesson Board Reaches $175M Accord Over Opioids

McKesson Board Reaches $175M Accord Over Opioids

Introduction

Investors sued McKesson Corp.'s board, claiming that the directors failed to maintain adequate internal systems for detecting suspicious opioids cargoes. They also reached a settlement of $175 million for the same.

According to the accord, McKesson executives agreed to restructure the company's rules and regulations by separating the role of the chief executive officer and board chairman and improvising policies regarding bonuses for officials who don’t perform properly. The accord is the result of McKesson failing to stop illegal shipments of painkillers to pharmacies.

McKesson settlement is a part of a $50 billion settlement of governmental lawsuits. Opponents doubt that $18 billion offer from McKesson, Cardinal Health Inc., and AmerisourceBergen Corp. is not enough. Johnson & Johnson has offered $4 billion along with Teva Pharmaceutical Ltd., proposing $23 billion in treatment medications and $250 million to the deal.

Over the past decade, McKesson has twice settled with the regulators who claimed that the company does not have proper systems to detect illegitimate shipments of opioids.