columbus.bizjournals.com: Scott & Scott LLC of Colchester, Conn. has filed to become lead plaintiff in the various lawsuits against Cardinal Health Inc.: “The firm is currently lead counsel litigating major shareholder cases including the employee benefits case against Royal Dutch/ Shell Petroleum” (ShellNews.net)

Posted 1 September 04

On Tuesday, the law firm filed a class action suit against the Dublin-based health care giant in the U.S. District Court for the Southern District of Ohio. It claims Cardinal used improper accounting methods to inflate its profit and share price, and that investors lost money when the accounting irregularities came to light.

The Securities and Exchange Commission and the U.S. Attorney's office for the Southern District of New York are investigating the company's accounting practices. Regulators are looking into charges the company booked as revenue from a lawsuit before the settlement was finalized, as well as the way it accounted for sales.

The suit is open to everyone who owned Cardinal stock between Oct. 24, 2000, and July 26, 2004. Several other firms have filed similar suits, including Barrack Rodos & Bacine of Philadelphia on Monday.

As lead counsel, Scott & Scott would have control over the direction of the case. The firm is currently lead counsel litigating major shareholder cases including the employee benefits case against Royal Dutch/ Shell Petroleum and the securities fraud case against ImClone Systems.

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