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The Court appointed MMM+B as counsel to
work on behalf of thousands of investors in
Cardinal Health. The Complaint in this securities
class action alleges that Cardinal, and certain
of its officers and directors issued materially false
statements concerning the Company's financial
condition. Specifically, defendants failed to
disclose: (i) that Cardinal manipulated various
aspects of its accounting practices to continuously
portray profitability to market; (ii) that Cardinal
held inventory for an average of two months,
and reaped exorbitant profits from price inflation;
(iii) Cardinal improperly accounted for the $22
million recovered from Vitamin makers accused of
overcharging Cardinal by booking such
recoveries as revenue when the antitrust cases
had not been resolved; and (iv) that Cardinal's
pharmaceutical distribution business improperly
classified revenues by reporting the revenues as
either operating revenue or revenues form bulk
deliveries to consumer warehouses when revenues
were not derived from such.
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