SEC Announces $35 Million Fair Fund Distribution to Defrauded Cardinal Health Investors
By admin - Posted on September 2nd, 2009
Washington, D.C., Sept. 1, 2009 — The Securities and Exchange Commission today announced the distribution of more than $35 million in Fair Funds to more than 98,000 investors in Cardinal Health, Inc. who were harmed by a fraudulent revenue and earnings management scheme.
The SEC's enforcement action against Cardinal Health in July 2007 alleged that the company presented a false picture of its operating results to the financial community and the investing public — one that matched its publicly disseminated earnings guidance and analysts' expectations rather than its true economic performance. Cardinal Health settled the SEC's charges and paid $35 million in penalties and disgorgement that were placed into the Fair Fund being distributed.
The Sarbanes-Oxley Act of 2002 (SOX) gave the SEC authority to increase the amount of money returned to injured investors by allowing civil penalties to be included in Fair Fund distributions. Prior to SOX, only disgorgement could be returned to investors. The SEC has returned more than $6.5 billion in Fair Funds to investors since gaining this new authority.
The Fair Fund Administrator responsible for this distribution is Gilardi & Co. Investor questions regarding the distribution may be directed to Gilardi & Co. by calling 1-800-447-7657 or by writing to Claims Administrator c/o Gilardi & Co., P.O. Box 808003, Petaluma, CA 94975-8003.
Source: SEC
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