In Re McKesson HBOC, Inc. Securities Litigation

ORDER RE MOTIONS TO DISMISS

Pending before the court are fourteen motions to dismiss the complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, which were heard by the court on September 15, 2000. The court has read the moving and responding papers and heard the argument of counsel. The court’s ruling is set forth in full at the end of this order.

I. BACKGROUND

This is a securities class action lawsuit stemming from a dramatic decrease in the trading price of McKesson HBOC, Inc. (“McKesson HBOC”) stock in April 1999.

A. Information PubliCLy Available Before The Filing of the Complaint

In October 1998, McKesson, Inc., a San Francisco-based company, announced that it would be acquiring HBO & Company (“HBOC”), a healthcare software company based in Atlanta, Georgia, through a merger. The newly formed entity was to be named McKesson HBOC, Inc. On November 13, 1998, McKesson registered shares for McKesson HBOC, Inc. with the Securities Exchange Commission (“SEC”). These shares were to be issued to HBOC shareholders in the event that the merger was approved. As part of the registration process, McKesson filed a registration statement (“the McKesson November…