Summary Notice of Proposed Settlement of Contingent Payment Claim with Arthur Andersen LLP in In Re McKesson HBOC Inc, Securities Litigation

PHILADELPHIA and NEW YORK, Dec. 12, 2012 /PRNewswire/ -- The following statement regarding the McKesson HBOC Securities Settlement was issued today by the law firms BERNSTEIN LITOWITZ BERGER & GROSSMANN LLP and BARRACK, RODOS & BACINE:

UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN JOSE DIVISION

In re McKESSON HBOC, INC. (NYSE: MCK) SECURITIES LITIGATION
Master File No. 99-CV-20743 RMW (PVT) And Related Class Action Cases

SUMMARY NOTICE OF PROPOSED SETTLEMENT OF CONTINGENT PAYMENT CLAIM WITH ARTHUR ANDERSEN LLP

TO: All persons or entities who are members of the Settlement Class in the above-captioned Litigation.¹ 

PLEASE READ THIS NOTICE CAREFULLY, YOUR RIGHTS WILL BE AFFECTED BY A PROPOSED SETTLEMENT.

YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Northern District of California, that Lead Plaintiff in the above-captioned litigation (the "Litigation") has reached a proposed settlement with Arthur Andersen LLP ("Andersen"). 

Lead Plaintiff previously achieved settlements in this Litigation with various defendants totaling in excess of $1.04 billion plus interest for the benefit of the Settlement Class.  One of the settlements previously achieved was with Andersen and it provided for a cash payment of $72.5 million, as well as the possibility of certain contingent payments (the "Contingent Payment Claim").  The currently proposed settlement will settle and release the Contingent Payment Claim in return for the immediate payment by Andersen of an additional $9.5 million in cash (the "Settlement").

A hearing will be held on February 8, 2013, at 9:00 a.m., before the Honorable Ronald M. Whyte in the United States District Court for the Northern District of California, San Jose Division, San Jose Courthouse, Courtroom 6, Fourth Floor, 280 South First Street, San Jose, CA 95113.  At this Settlement Hearing, the Court will consider whether the proposed Settlement is fair, reasonable, and adequate and should be approved, and whether a motion by Lead Counsel for an award of attorneys' fees in the amount of $134,930 (1.42% of the $9.5 million Settlement Amount) and reimbursement of expenses in an amount not to exceed $40,000 should be approved.

If you are a member of the Class, your rights will be affected by the Settlement.  PLEASE NOTE, however, that only Class Members who submitted valid claim forms, cashed their most recent distribution from the proceeds of the earlier settlements achieved in the Litigation, and who would be entitled to a minimum payment of $10.00 in the next distribution (which will include the proceeds of this Settlement, if approved), will be eligible to participate in the distribution of the proposed Settlement. 

THERE IS NO CLAIM FORM TO BE SUBMITTED IN CONNECTION WITH THIS PROPOSED SETTLEMENT.

DISTRIBUTION WILL BE MADE BASED ON THE PREVIOUSLY SUBMITTED CLAIM FORMS.

Please review the full Notice of Proposed Settlement of Contingent Payment Claim With Arthur Andersen LLP (the "Notice"), which provides more details about the proposed Settlement.  The Notice is available for downloading at www.mckessonhbocsettlement.com and from Lead Counsel's websites, www.blbglaw.com and www.barrack.com.  Copies of the Notice can also be requested by writing to In re McKesson HBOC Inc. Securities Litigation, c/o BMC Group Class Action Services, P.O. Box 2005, Chanhassen, MN 55317-2005, by telephone at 1-866-217-3485 (toll free), or by emailing a request to [email protected], at any time prior to the Settlement Hearing.  

Any objections to the proposed Settlement or Lead Counsel's motion for an award of attorneys' fees and reimbursement of expenses, must be filed with the Court and delivered to Lead Counsel and Andersen's Counsel such that they are received no later than January 18, 2013, in accordance with the instructions set forth in the Notice.

PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE.  Inquiries, other than requests for the Notice, may be made to Lead Counsel:

John C. Browne, Esq.
BERNSTEIN LITOWITZ BERGER & GROSSMANN LLP
1285 Avenue of the Americas
New York, NY 10019
(800) 380-8496
www.blbglaw.com

Jeffrey W. Golan, Esq.
BARRACK RODOS & BACINE
3300 Two Commerce Square
2001 Market Street
Philadelphia, PA 19103
(215) 963-0600
www.barrack.com

Dated:  December 12, 2012

BY ORDER OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA

¹ The Settlement Class (or "Class") means all persons and entities who (i) purchased or otherwise acquired public traded securities of HBO & Company ("HBOC") during the period from January 20, 1997 through and including January 12, 1999, (ii) purchased or otherwise acquired call options or sold put options of HBOC during the period from January 20, 1997 through and including April 27, 1999, (iii) purchased or otherwise acquired publicly traded securities or call options or sold put options of McKesson Corporation ("McKesson") or McKesson HBOC, Inc. during the period from October 18, 1998 through and including April 27, 1999, or (iv) held McKesson common stock on November 27, 1998 and still held those shares on January 12, 1999; and who were injured thereby.  The Class does not include persons or entities who were excluded from the Class pursuant to a request for exclusion or who were excluded by definition as set forth in the Stipulation and Agreement of Settlement between Lead Plaintiff and Defendant Arthur Andersen LLP dated December 19, 2006.  

Web site: http://www.barrack.com/
http://www.blbglaw.com/
http://www.mckessonhbocsettlement.com/

SOURCE Bernstein Litowitz Berger & Grossmann LLP; Barrack, Rodos & Bacine