NEW YORK, Aug. 13, 2004 (PRIMEZONE) -- The following statement was issued today by Squitieri & Fearon, LLP.
A class action lawsuit has been filed 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").
If you wish to discuss your rights, please contact Lee Squitieri of Squitieri & Fearon, LLP at (212) 421-6492 or by e-mail at lee@sfclasslaw.com.
The complaint alleges that defendants Cardinal Health, Inc. (NYSE:CAH), its Employee Benefits Policy Committee, and certain of its officers and directors breached their duties under ERISA by (1) failing to properly manage the Plans' assets by imprudently investing a significant amount of the Plans' assets in Cardinal Health stock; (2) failing to provide complete and accurate information to participants and beneficiaries; and (3) engaged in prohibited transactions under ERISA.
Specifically, plaintiffs allege, among other things, that, during the Class Period, Cardinal Health stock was grossly overvalued and should not have been sold to retirement plans and was an imprudent retirement investment because (1) Cardinal's business model for its pharmaceutical distribution business was no longer viable and was in the process of being scrapped and replaced with a new business model which has led to a drastic decline in profitability and undermined Cardinal's prospects for growth; (2) Cardinal Health's pharmaceutical distribution business improperly classified revenue to create the illusion of revenue growth; (3) Cardinal Health improperly accounted for $22 million recovered from vitamin antitrust litigation; and (4) the price of Cardinal Health common stock was therefore artificially inflated during the Class Period.
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:
Squitieri & Fearon, LLP Lee Squitieri 32 East 57th Street 12th Floor New York, NY 10022 (212) 421-6492 lee@sfclasslaw.com
The partners at Squitieri & Fearon, LLP have been in the forefront of ERISA litigation since their involvement in a groundbreaking ERISA employee benefit case involving one of America's largest Pharmacy Benefit Managers. Recently, as lead counsel in an ERISA breach of fiduciary case against Textron, the firm was successful in convincing the Court of Appeals in Boston to reinstate all of the claims against Textron and Textron related defendants.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.