In Re McKesson HBOC, Inc. ERISA Litigation

ORDER (1) GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTIONS TO DISMISS PLAINTIFFS’ CONSOLIDATED AMENDED COMPLAINT AND (2) DENYING PLAINTIFFS’ MOTION FOR LEAVE TO FILE A SECOND CONSOLIDATED AMENDED COMPLAINT

[Re Docket Nos. 84, 100, 116, 118, 120, 122, 123, 124, 291, 320]

Christine Chang and James Huffman (“plaintiffs”), former participants in McKesson Corporation’s Profit-Sharing Investment Plan (“the Plan”), bring a class action lawsuit against multiple defendants for their alleged breaches of fiduciary-duties under the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1001 , et seq. On January 12, 1999 McKesson Corporation merged with HBOC to form McKesson HBOC. Later that year, McKesson HBOC announced that HBOC had engaged in accounting irregularities. As a result, McKesson HBOC’s stock price plummeted and the Plan lost substantial value. On April 30, 1999, McKesson HBOC made its annual contribution to McKesson HBOC’s Employee Stock Ownership Plan (“ESOP”). McKesson HBOC made this contribution in the form of stock. That contribution is the only contribution at issue in this litigation.

In March 2003 several defendants moved to dismiss plaintiffs’…