Cardinal Health Tags $600M For Securities Settlement

Law360, New York (April 24, 2007, 12:00 AM EDT) -- Inching closer to burying the hatchet with investors, Cardinal Health Inc. said Monday it had set up a $600 million reserve toward the possible settlement of a class action accusing the pharmaceutical and medical supply company of accounting irregularities and inflated earnings reports.

Cardinal Health, which revealed the hefty reserve in a filing with the U.S. Securities and Exchange Commission on Tuesday, said the decision to establish the reserve would result in an after-tax charge to third-quarter earnings of approximately $384 million.

It added that negotiations...
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