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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
89
Federal Actions
On January 12, 2005, we announced that we reached an agreement to settle the previously-reported action in the
Northern District of California captioned: In re McKesson HBOC, Inc. Securities Litigation, (No. C-99-20743
RMW) (the “Consolidated Securities Litigation Action”). In general, we agreed to pay the settlement class a total of
$960 million in cash. On February 24, 2006, the Honorable Ronald M. Whyte signed a Final Judgment and Order of
Dismissal (the “Judgment”), in which the Court gave its final approval to the settlement of the Consolidated
Securities Litigation Action and dismissed on the merits and with prejudice all claims asserted against the Company,
HBOC, and Defendants’ Released Persons (as that term is defined in the Judgment). On March 23, 2006, Defendant
Bear Stearns filed an appeal of the Judgment to the United States Court of Appeals for the Ninth Circuit. The appeal
by Bear Stearns challenged certain provisions of the settlement that restricted Bear Stearns’ ability to bring certain
claims in the future against the Company, HBOC and certain other persons released in the settlement.
On September 28, 2007, the trial court in the Consolidated Securities Litigation Action preliminarily approved a
settlement by Bear Stearns of all claims against it by the class. As part of that settlement with the class, Bear
Stearns agreed to dismiss its appeal from the Company’ s settlement, as well as to dismiss its New York State Court
action against the Company, as described below, and to fully release the Company as to all claims related to the
Securities Litigation. In consideration of these Bear Stearns obligations, the Company agreed to pay $10 million to
fund the Bear Stearns class settlement. The Bear Stearns appeal was dismissed on October 9, 2007, making the
Company’ s settlement of the Consolidated Securities Litigation Action final and binding on both the Company and
the class. On January 18, 2008, Judge Whyte gave his final approval to the Bear Stearns class action settlement.
On August 11, 2005, the Company and HBOC filed a complaint against Andersen and former Andersen partner
Robert A. Putnam (“Putnam”) in San Francisco Superior Court captioned McKesson Corporation et al. v Andersen
et al., (No. 05-443987), which Putnam subsequently removed to the United States District Court for the Northern
District of California. Upon removal, the case was assigned to Judge Whyte and given N.D. Cal. Case No. 05-
04020 RMW. In its complaint, as amended on March 28, 2006, McKesson asserted claims against Andersen for
negligent misrepresentation, breach of contract, indemnity and contribution, and HBOC asserted claims against
Andersen for breach of contract, professional negligence, equitable indemnity or declaratory relief, and contribution.
On March 16, 2006, Andersen filed its own action against McKesson and HBOC in federal court in San Jose
captioned Andersen v. McKesson Corporation et al., (No. C-06-02035-JW). In its complaint, Andersen asserted
claims against McKesson and HBOC for fraud, negligent misrepresentation, breach of contract, breach of the
covenant of good faith and fair dealing, equitable indemnity and declaratory relief, in connection with Andersen’ s
prior audits and reviews of HBOC’ s financial results. In the second quarter of 2008, the Company, Andersen and
Putnam reached a global settlement of all claims related to the Securities Litigation, including those involved in
these two lawsuits; and the lawsuits have been dismissed with prejudice.
The previously-reported action captioned Cater v. McKesson Corporation et al., (No. C-00-20327-RMW) has
also been settled.
Based on the above described settlements and actions, there are no longer any Securities Litigation matters
pending in federal court.