Defendant Name: Cardinal Health, Inc.

Defendant Type: Public Company

Document Reference: 2007-147

Document Details

Legal Case Name SEC v. Cardinal Health, Inc.
Document Name SEC Sues Cardinal Health, Inc. For Fraudulent Earnings and Revenue Management Scheme
Document Date 26-Jul-2007
Document Format Civil Proceeding
Case Number 07-cv-06709
Allegation Type Issuer Reporting and Disclosure
Document Summary The SEC stated: "Cardinal Health, Inc., a pharmaceutical distribution company based in Dublin, Ohio, has agreed to pay $35 million to settle charges that it engaged in a nearly four-year long fraudulent revenue and earnings management scheme, as well as other improper accounting and disclosure practices."

Disgorgement & Penalty Information

Resolutions
Enjoinment
Compliance Related Independent Consultant
Cooperation Before the Resolution
Monetary Penalties:

Disgorgement

Individual:     $1.00 Shared:    

Civil Penalty

Individual:     $35,000,000.00 Shared:    

Related Documents:

LR-20212 26-Jul-2007 Litigation Release
SEC Sues Cardinal Health, Inc. For Fraudulent Earnings and Revenue Management Scheme
The SEC stated that: "[It] filed a civil action against Cardinal Health, Inc. (Cardinal), a pharmaceutical distribution company based in Dublin, Ohio, in which Cardinal agreed to pay $35 million to settle charges that it engaged in a nearly four-year long fraudulent revenue and earnings management scheme, as well as other improper accounting and disclosure practices"
comp20212 26-Jul-2007 Complaint
Complaint
The Commission stated: "From at least September 2000 through at least March 2004, defendant Cardinal Health, Inc. ("Cardinal" or the "Company") engaged in a fraudulent earnings and revenue management scheme and other improper accounting and disclosure practices. Cardinal engaged in this conduct in order to present a false picture of its results of operations to the financial community and the investing public - one that matched Cardinal's publicly disseminated earnings guidance and analysts' expectations, rather than its true economic performance. Through these practices, the Company materially overstated its operating revenue, earnings and growth trends in certain earnings releases and filings with the Commission."
court_doc2_07-cv-06709 01-Aug-2007 Court Docket Document
Final Judgment as to Defendant Cardinal Health, Inc.
On August 1, 2007, the Court approved a settlement between the SEC and Defendant Cardinal Health, Inc. The Court stated: "Defendant Cardinal Health, Inc. . . . consented to the Court's jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction)."
2009-191 01-Sep-2009 Press Release--Civil Action
SEC Announces $35 Million Fair Fund Distribution to Defrauded Cardinal Health Investors
The SEC announced "the distribution of more than $35 million in Fair Funds to more than 98,000 investors in Cardinal Health, Inc. who were harmed by a fraudulent revenue and earnings management scheme. The [enforcement action] alleged that the company presented a false picture of its operating results to the financial community and the investing public - one that matched its publicly disseminated earnings guidance and analysts' expectations rather than its true economic performance."

Related Actions:

SEC v. Richard J. Miller, Gary S. Jensen, and Michael E. Beaulieu
Richard J. Miller
Gary S. Jensen
Michael E. Beaulieu
In the Matter of Michael Beaulieu (CPA)
In the Matter of Gary Jensen (CPA)
In the Matter of Richard Miller (CPA)