Aronson, et al v. McKesson HBOC, Inc., et al

Filing 1779

ORDER re 1745 Approving Further Distribution of Net Settlement Funds. Signed by Judge Whyte on 4/27/09. (rmwlc3, COURT STAFF) (Filed on 4/27/2009)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 This Document Relates To: ALL ACTIONS. In re McKESSON HBOC, INC. SECURITIES LITIGATION

E-Filed on 4/27/09

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION Master File No. 99-CV-20743 RMW (PVT) And Related Cases CLASS ACTION Date: Time: Place: Judge: N/A N/A Courtroom 6, Fourth Floor The Honorable Ronald M. Whyte

[PROPOSED] ORDER APPROVING FURTHER DISTRIBUTION OF THE NET SETTLEMENT FUNDS

ORDER APPROVING FURTHER DISTRIBUTION OF SETTLEMENT FUNDS Master File No. 99-CV-20743 RMW (PVT)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Lead Plaintiff's Motion for Approval of Further Distribution of the Net McKesson Settlement Fund and the Net Andersen Settlement Fund and the Plan of Distribution of the Net Bear Stearns Settlement Fund duly came before the Court for hearing on March 6, 2009, at 9:00 a.m., pursuant to paragraph 25 of the Stipulation and Agreement of Settlement Between Lead Plaintiff and Defendants McKesson HBOC, Inc. and HBO & Company dated February 11, 2005 ("McKesson Settlement"); paragraph 24 of the Stipulation and Agreement of Settlement Between Lead Plaintiff and Defendant Arthur Andersen LLP dated as of December 19, 2006 ("Andersen Settlement"); and paragraph 30 of the Stipulation and Agreement of Settlement Between Lead Plaintiff and Defendant Bear Stearns & Co. Inc. dated as of September 24, 2007 ("Bear Stearns Settlement"). The Court has read and considered Lead Plaintiff's Motion and all supporting and other related materials, including Lead Plaintiff's Memorandum In Support Of Further Distribution Of The Net Settlement Funds and the Affidavit Of Richard W. Simmons In Support Of Motion For Second Distribution Of The Net McKesson And Arthur Andersen Settlement Funds And Initial Distribution Of the Net Bear Stearns Settlement Fund ("Simmons Affidavit"), submitted therewith, and all additional information submitted in response to the Court's March 6, 2009 Order Regarding Further Distribution of the Net Settlement Funds; NOW, THEREFORE, IT IS HEREBY ORDERED: 1. 2. Lead Plaintiff's Motion is GRANTED; The administrative recommendation to accept 51,571 Claims, as set forth in

Exhibits H-1, H-2, H-4 and H-5 to the Simmons Affidavit, is adopted. For the reasons stated in the Affidavit of Richard Simmons, dated April 14, 2009, the following claims are deemed valid: Joseph R. Stabile, Claim Number 110321; Kenneth Morrison, Claim Number 269936; and Robert S. Cauthen, Claim Number 104489. For the reasons stated in the Affidavit of Richard Simmons, dated April 14, 2009, the following claims are rejected: Robert S. Cauthen, Claim Numbers 311518 and 112415.

ORDER APPROVING FURTHER DISTRIBUTION OF SETTLEMENT FUNDS Master File No. 99-CV-20743 RMW (PVT)

-1-

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

3.

Lead Counsel is authorized to direct a distribution of the previously reserved

forty-five percent (45%) of the Net McKesson and Arthur Andersen Settlement Funds and the Net Bear Stearns Settlement Fund to such Authorized claimants; 4. The claim submitted by the McKesson Profit Sharing ("PSIP") is accepted in its

entirety for 19,273,435 McKesson shares. Lead Counsel is authorized to distribute to the PSIP its pro rata share of the previously reserved forty-five percent (45%) of the Net McKesson and Arthur Andersen Settlement Funds and, in addition, to distribute to the PSIP its pro rata share of the Net Bear Stearns Settlement Fund; 5. The distribution of the approximately $5.96 million currently held by the United

States Securities and Exchange Commission ("SEC") and the United States Attorney's Office ("USAO") ("Government Funds") pursuant to the Court-approved Plan of Allocation is approved, and Lead Counsel is authorized to distribute the Government Funds to Authorized Claimants; 6. The wholly ineligible or otherwise deficient Claims not disputed, as set forth in

Exhibits H-3 and H-6 to the Simmons Affidavit, are rejected; 7. The Disputed Claims, as set forth in Exhibits F-1 through F-8 to the Simmons

Affidavit, are rejected; 8. The following claims are ACCEPTED/REJECTED: Claim Number 295144 6049180 7124019 7124020 122922 293524 Position Regional Vice President of Consulting Regional Vice President Regional Vice President Regional Vice President Region VP of Distribution Operations Area VP Payor Solutions Group

Claimant Kevin Scheckelhoff Holly McInerny Holly McInerny Holly McInerny Daniel Hanekamp Joanne Konrath IRRA 9.

Lead Counsel is authorized to distribute the remaining Net Settlement Funds

(after deducting estimated taxes and the costs of preparing appropriate final tax returns) and the approximately $5.96 million in restitution and penalty funds recovered by the SEC and the USAO in connection with their investigations and enforcement proceedings to the Authorized Claimants in proportion to their Recognized Loss Amounts;

ORDER APPROVING FURTHER DISTRIBUTION OF SETTLEMENT FUNDS Master File No. 99-CV-20743 RMW (PVT)

-2-

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

10. 11.

No Claim received after December 31, 2008, may be accepted; Each Claimant receiving an initial payment from the Net Settlement Funds in

connection with the further distribution shall simultaneously receive a letter, substantially in the form set forth in Exhibit A hereto, which shall inform the Authorized Claimant that the payment represents a pro rata share of both the $550 million initial distribution amount and the approximately $465 million further distribution amount. The letter shall include a notice

advising that should an Authorized Claimant disagree with the calculation of his, her or its Recognized Amount or distribution amount, such disagreement must be made in writing, detailing the disagreement, and must be sent to the Claims Administrator, postmarked no later than a date thirty days after the distribution check is mailed. The letter shall also advise the Authorized Claimant that the failure to timely inform the Claims Administrator of his, her or its objection in the manner provided shall be deemed to have forever waived all objections to the amount of the distribution. 12. Each Authorized Claimant receiving a second payment from the Net Settlement

Funds in connection with the further distribution shall simultaneously receive a letter, substantially in the form set forth in Exhibit B hereto, which shall inform the Authorized Claimant that the payment represents a pro rata share of the approximately $465 million further distribution amount. 13. Lead Counsel is authorized to direct payment of $142,900 out of the Net

Settlement Funds to the Claims Administrator, Analytics, Inc., for its fees and expenses in connection with the administration of the McKesson, Andersen and Bear Stearns Settlements; 14. The administration of the Net Settlement Funds and the distribution of the Net

Settlement Funds comply with the terms of the Stipulations and the Plan of Allocation. All persons involved in the review, verification, calculation, tabulation, or any other aspect of the processing of the claims submitted herein, or otherwise involved in the administration or taxation of the Settlement Funds or the Net Settlement Funds, are released and discharged from any and all claims arising out of such involvement; and all Settlement Class Members, whether or not they received or are to receive payment from the Net Settlement Funds, are barred from making
ORDER APPROVING FURTHER DISTRIBUTION OF SETTLEMENT FUNDS Master File No. 99-CV-20743 RMW (PVT) -3-

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

any further claims against the Net Settlement Funds or Lead Plaintiff, Lead Counsel, the Claims Administrator, the escrow agent or any other agent retained by Lead Plaintiff or Lead Counsel in connection with the administration of the Settlements beyond the amount allocated to such Class Members pursuant to this Order and the Court's prior distribution orders in this litigation; and 15. The Court retains jurisdiction to consider further applications concerning the

administration of the Settlements, including, without limitation, any further administrative fees and expenses relating to the distribution of the reserved funds, and such other and further relief as this Court deems appropriate. IT IS SO ORDERED. DATED: April 27 , 2009

THE HONORABLE RONALD M. WHYTE United States District Court Judge

ORDER APPROVING FURTHER DISTRIBUTION OF SETTLEMENT FUNDS Master File No. 99-CV-20743 RMW (PVT)

-4-