Lawyers for Former McKesson Chairman Seek New Trial, Say Juror 'Muddied' Instructions

Lawyers for Former McKesson Chairman Seek New Trial, Say Juror 'Muddied' Instructions - 12-8-2009 , Class Action News, Class Action, Securities News, shareholder class action, claim, litigation, securities action, common stock'>

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Lawyers for Former McKesson Chairman Seek New Trial, Say Juror 'Muddied' Instructions
Dan Levine

The Recorder. December 8, 2009
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EXCERPT: Last week U.S. District Judge William Alsup distributed to the parties juror questionnaires that had been filled out post-verdict. The judge flagged responses from one juror, in which she indicated that the foreperson -- a Stanford Law School graduate -- "helped" by clarifying what the term "reckless disregard" means, according to papers filed by McCall's attorney, Michael Shepard of Hogan & Hartson. Not surprisingly, McCall's lawyers are hopping mad. They're asking for a new trial -- or an evidentiary hearing at a minimum. Reckless disregard was part of the court's instructions on intent, a "central issue" in the case, Shepard wrote. The scenario "differs in no material way from one in which a juror impermissibly consults a dictionary for the definition of a term," he wrote. McCall was convicted on several securities fraud counts after top executives made up sales shortfalls by ginning up side letters that allowed customers to pull out of sales contracts, and then hiding those letters from company auditors. McCall allegedly learned of the scam during merger talks with McKesson. The same jury acquitted former general counsel Jay Lapine on all counts. In addition to the questionnaire, Shepard wrote that a juror told him afterward that she believed McCall acted negligently. Those comments further suggest the foreperson's comments "muddied" the legal instructions provided by the judge.

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