Cardinal Health Agrees to $35 Million Settlement with SEC
By Danielle Briones
Published on January 30, 2006
Officials at Cardinal, a provider of health-care products and services, have stated that the terms of the settlement are not final and the plan is pending the approval of the full commission.
The probe conducted by the SEC started with an examination of Cardinal's accounting practices for expected settlements of claims against vitamin manufacturing companies.
The SEC later broadened the investigation to look into how the company accounted for earnings in its business that distributes medications.
An internal audit at Cardinal revealed a number of errors that led the company to restate more than four years of financial statements.
Numerous lawsuits have since been filed against Cardinal, alleging the company overstated stock prices and misled investors about the condition of its finances and operations.
The U.S. Attorney for the Southern District of New York is also conducting a probe into Cardinal's accounting practices.
Representatives for Cardinal had no comment on the agreement.
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