SEATTLE, Aug. 12, 2004 (PRIMEZONE) -- Keller Rohrback L.L.P. (www.erisafraud.com) has filed a 401(k) Breach of Fiduciary Duty class action in the United States District Court for the Southern District of Ohio on behalf of participants and beneficiaries of the Cardinal Health Profit Sharing, Retirement and Savings Plan and the Syncor International Employees' Savings and Stock Ownership Plan (the "Plans"), who were invested in Cardinal Health Shares through the Plans between October 24, 2000 and the present (the "Class Period").
The complaint alleges that Defendants Cardinal Health, Inc. (NYSE:CAH), its Employee Benefits Policy Committee, and certain of its officers and directors breached their fiduciary duties of loyalty and prudence by (1) failing to prudently and loyally manage the Plans' assets by imprudently investing a significant amount of the Plans' assets in Cardinal Health stock; (2) failing to monitor and provide fiduciary appointees with information that the appointing fiduciaries knew or should have known that the monitored fiduciaries must have in order to prudently manage the Plans' assets; (3) failing to provide complete and accurate information to participants and beneficiaries; and (4) breaching their duty to avoid conflicts of interest. To view a copy of the filed Complaint please visit Keller Rohrback's 401(k) ERISA fraud website at: www.erisafraud.com.
Specifically, plaintiffs allege that, during the Class Period, Cardinal Health stock was an imprudent retirement investment because (1) Cardinal Health was misreporting its financial results so as to continuously over represent the Company's profitability; (2) Cardinal Health's pharmaceutical distribution business improperly classified revenue by reporting revenue as either operating revenues or revenues from bulk deliveries to consumer warehouses, when revenues were not derived from such operations; (3) Cardinal Health improperly accounted for $22 million recovered from vitamin antitrust litigation; (4) Cardinal Health's financial statements were not prepared in compliance with generally accepted accounting principles, the Company lacked adequate internal controls and the Company's earnings per share were materially inflated throughout the Class Period; and (5) the price of Cardinal Health common stock was therefore artificially inflated during the Class Period.
Recently, Cardinal Health's Chief Financial Officer, Richard J. Miller, and Treasurer, Donna Brandin, have resigned. Cardinal Health, Inc. has announced its intent to delay release of its 2004 results and an inquiry by its Audit Committee and independent counsel. The Company is also under investigation by the Securities and Exchange Commission and the United States Attorney's Office. The stock closed at $43.81 per share on August 9, 2004. In early May, the stock traded as high as $76 per share.
If you are a member of one of the Plans and wish to discuss this announcement, are interested in actively participating in this litigation, and/or have information relevant to the ongoing investigation, please contact Keller Rohrback (paralegal Jennifer Tuato'o or attorneys Lynn Sarko or Elizabeth Leland) via e-mail at investor@kellerrohrback.com, toll free at 800/776-6044, or on-line at www.erisafraud.com
Keller Rohrback is one of America's leading law firms handling ERISA retirement plan litigation. Our attorneys helped pioneer this field in the Lucent and IKON ERISA breach of fiduciary duty cases -- the first large-scale ERISA 401(k) cases filed. Keller Rohrback serves as lead and co-lead counsel in numerous ERISA breach of fiduciary duty cases, including the Enron and WorldCom, Inc. ERISA litigations and was most recently appointed lead counsel in The Goodyear Tire & Rubber Company ERISA Litigation. Keller Rohrback has successfully provided class action representation for over a decade. Its trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca