A unanimous three-judge panel of the 9th U.S. Circuit Court of Appeals panel turned aside McKesson Corp.'s suit against its institutional investors Wednesday. The San Francisco health care giant said investors were unjustly enriched when it merged with software company HBO & Co. Shortly after the merger, McKesson reported accounting problems at HBOC, leading to a dramatic decline in the company's value. Investors sued after the alleged fraud caused McKesson's market value to drop.
9th Circuit Says McKesson Can't Sue Shareholders
August 14, 2003