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Former McKesson Chair Charles McCall Found Guilty of Securities Fraud

November 19, 2009 News 6 Comments

A San Francisco jury has found former McKesson chairman Charles McCall guilty of five of six counts of securities fraud. He was acquitted on a single charge of falsifying records.

Federal prosecutors said the former chairman, president, and CEO of HBO & Company covered up that company’s fraudulent activities, allowing it to be acquired by McKesson for $14.5 billion in January 1999. The fraud was discovered three months later, sending McKesson shares into a nosedive.

Former McKesson general counsel Jay Lapine was acquitted on all three charges he faced.

McCall was originally tried on the charges in 2006, but a mistrial was declared. He will be sentenced in March.



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Currently there are "6 comments" on this Article:

  1. I am disappointed to learn that Charlie McCall was found guilty of five of the six charges. I met him in 1993 and he was as close to a legend as could be found in our industry. Having said that, if he is guilty he must pay for his crimes just like any other common criminal. I hope he gets a cellmate named Maurice.

  2. At the sentencing trial they should bring up the ethics and quality of his EHRs and their service. He’ll get life.

  3. I have to admit that I didn’t follow the trial closely at all but supposedly this was a case of long overdue justice. Interesting to see what his sentence and fines will be.

  4. Finally…

    What I find amazing is that McKesson was able to bounce back and still compete in this market after what would kill pretty much every other company in this space. Good thing they are diverse enough to offset the few bad years. Didn’t they replace a Cerner, Epic, and Eclipsys site already this year in clinicals? (Trying to remember all of Mr. HISTalk’s scoops…)

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