McKesson Wins Early OK for Settlement

McKesson Corp., the biggest U.S. drug wholesaler, won a judge’s preliminary approval for a $960-million settlement aimed at resolving investor lawsuits over the company’s 1999 earnings restatement.

U.S. District Judge Ronald Whyte in San Jose rebuffed objections from Bear Stearns Cos., another defendant in the suits, according to an order filed Sept. 8. The accord reached in January must win final approval before payouts can begin.

The settlement would be the sixth-largest in U.S. history, based on data compiled by Bloomberg News.

It seeks to resolve fraud suits filed after a restatement tied to HBO & Co., which McKesson acquired for $14 billion in 1998. The restatement led to a one-day drop in the company’s stock that wiped out $8.6 billion in market value.