Cardinal Health 2015 Annual Report Download - page 38

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Properties and Legal Proceedings
37 Cardinal Health | Fiscal 2015 Form 10-K
Properties
In the United States, at June 30, 2015, the Pharmaceutical segment
operated 22 primary pharmaceutical distribution facilities and one
national logistics center; six specialty distribution facilities; and over
150 nuclear pharmacy and cyclotron facilities. The Medical segment
operated 78 medical-surgical distribution, assembly, manufacturing
and other facilities. Our U.S. operating facilities are located in 45
states and in Puerto Rico.
Outside the United States, at June 30, 2015, our Medical segment
operated over 20 facilities in Canada, the Dominican Republic,
Malaysia, Malta, Mexico and Thailand that engage in manufacturing,
distribution or research. In addition, our Pharmaceutical and Medical
segments utilized various distribution and pharmacy facilities in
China.
At June 30, 2015, we owned over 70 operating facilities and leased
more than 200 operating facilities. Our principal executive offices are
headquartered in an owned building located at 7000 Cardinal Place
in Dublin, Ohio.
We consider our operating properties to be in satisfactory condition
and adequate to meet our present needs. However, we regularly
evaluate operating properties and may make further additions and
improvements or consolidate locations as we seek opportunities to
expand or enhance the efficiency of our business.
Legal Proceedings
In addition to the proceedings described below, the legal proceedings
described in Note 9 of the "Notes to Consolidated Financial
Statements" are incorporated in this "Legal Proceedings" section by
reference.
In June 2015, Erste-Sparinvest Kapitalanlagegesellschaft m.b.H.,
the plaintiff in a derivative action in the U.S. District Court for the
Southern District of Ohio, voluntarily dismissed its complaint and the
court dismissed the action without prejudice. The plaintiff, a purported
shareholder, had filed the action in January 2015 against the current
and certain former members of our Board of Directors alleging that
the defendants breached their fiduciary duties by failing to implement
and maintain a system to prevent diversion of controlled substances
in connection with, among other things, the DEA’s past suspensions
of our distribution centers’ registrations. The derivative complaint
sought, among other things, unspecified money damages against
the defendants and an award of attorney's fees. In dismissing the
complaint, the plaintiff stated that it believed it was unlikely to be able
to sustain its burden of proof regarding the allegations. Neither we
nor any of the other defendants made any payments or other
concessions in connection with the dismissal.