According to the Complaint, Cardinal Health, Inc. is a global, integrated healthcare services and products company.
This action arises from Defendants' alleged misrepresentations and omissions relating to Cardinal's integration of Cordis Corp., a medical device manufacturer Cardinal purchased from Johnson & Johnson in March 2015, and the inventory and supply chain problems at Cordis.
The Complaint alleges that, throughout the Class Period, Defendants misled investors by stating that Cordis would benefit from Cardinal's advanced inventory management and supply chain information technology solutions, and that Defendants also falsely represented that the Company properly "reserve[d] for inventory obsolescence" and that "[i]nventories presented in the consolidated balance sheets [were] net of reserves for excess and obsolete inventory." As a result of these misrepresentations, Cardinal shares allegedly traded at artificially inflated prices throughout the Class Period.
On June 19, 2020, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated amended Complaint on September 8. Defendants filed a Motion to Dismiss the consolidated amended Complaint on November 6. On September 27, 2021, the Court issued an Order denying Defendants' Motion to Dismiss.
On March 31, 2023, the parties entered into a Stipulation of Settlement. The Court granted preliminary approval of the Settlement on April 4. On September 13, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.