DUBLIN, Ohio, July 26 (UPI) -- U.S. drug distribution firm Cardinal Health said Thursday it will pay $35 million to end a government suit based on alleged fraud in revenue reporting.
The company said it would make the payout as part of its deal with the Securities and Exchange Commission to settle a lawsuit in which SEC accused Cardinal of misstating its earnings in financial reports from 2000 to 2004.
Under the deal, Cardinal also agreed to retain an independent consultant to review company policies and practices, and be enjoined from future violations of certain provisions of the federal securities laws.
The pharmaceutical distributor giant said that, as a result of the government probe, it conducted its own internal investigation and filed an earnings restatement in October 2004.
Cardinal said the SEC inquiry prompted a number of company changes, including modification of its reporting and disclosure practices, the hiring of a new chief financial officer, chief accounting officer and controller, and enhancement of its finance staff to support the firm's size and growth.
Cardinal added that a related inquiry being conducted by the U.S. Attorney's Office for the Southern District of New York has been closed as a result of the settlement.
