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Milberg Weiss Gives Notice To Long-Term Shareholders of McKesson Stock Of Right To Join Suit To Set Aside Merger With HBO & Company By July 12, 1999.

SAN FRANCISCO--(BUSINESS WIRE)--July 2, 1999--

Milberg Weiss (http://www.milberg.com) today announced that a class action entitled, The Jack Cooper Investment Corporation v. McKesson HBOC, Inc., Case No. C-99-20801-JW, has been commenced in the United States District Court for the Northern District of California on behalf of all shareholders of McKesson common stock as of the close of business on November 27, 1998 through January 12, 1999 ("The Voting Class" of McKesson shareholders) or who held McKesson stock on January 12, 1999 (the "Merged Class" of McKesson shareholders).

If you held shares of McKesson Corporation ("McKesson") stock (NYSE:MCK) as of the close of business on November 27, 1998 through January 12, 1999 ("The Voting Class" of McKesson shareholders or ) or held McKesson stock on January 12, 1999 ( the "Merged Class" of McKesson shareholders) you may have only until July 12, 1999, to move the Court to serve as lead plaintiff of a class of McKesson shareholders who seek to rescind the merger between McKesson Corporation and HBO & Company ("HBOC"), which closed on January 12, 1999. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

On June 28, 1999, several institutions and individuals filed motions to seek lead plaintiff status on behalf of HBOC shareholders and purchasers, and on behalf of recent McKesson purchasers. These groups may have interests different from or in conflict with the long-term McKesson shareholders belonging to the Voting Class or Merged Class.

Unlike previous actions, this new suit seeks to hold responsible the financial advisors and accountants who substantially participated in the solicitation of proxies and consent of McKesson shareholders to the merger with HBOC.

The complaint charges that McKesson, HBOC, certain of their officers and directors, certain of McKesson's financial advisors, including Salomon Smith Barney, Inc., and Bear, Stearns & Co., and HBOC's auditors Arthur Andersen LLP ("Defendants") violated Section 14(a) of the Securities Exchange Act of 1934 by soliciting or permitting the use of their names to solicit the proxy, vote or consent of McKesson shareholders to the proposed and now consummated merger with HBOC. The complaint charges that the Joint Proxy Statement issued on November 27, 1998 contained false and misleading statements concerning the fairness of the transaction, financial analysis, the sufficiency of due diligence investigations, HBOC's business, earnings growth and financial statements. On June 21, 1999, McKesson HBOC Inc. said it will restate fiscal 1999 earnings, will delay filing its annual report and has fired several executives for their involvement in the accounting improprieties that led to the delay. The restatement stems from an overstatement of sales at McKesson's recently acquired software Information Technology Business unit, formerly HBOC Inc. McKesson said it has fired its board chairman, Charles McCall, and several senior management because of the accounting improprieties. In addition, McKesson said Chief Executive Mark Pulido and Chief Financial Officer Richard Hawkins have resigned.

"Because of the nature of accounting improprieties that we have found at the old HBO & Company, and the participation of senior level employees of this business in such improprieties, we felt compelled to take prompt and decisive action," McKesson said.

By soliciting votes and consents through this false Joint Proxy Statement, Defendants wrongfully consummated a merger with HBOC to the detriment of long-term McKesson shareholders, restructured the Board of Directors, and diluted McKesson shareholders' stock.

The suit seeks to set aside the merger with HBOC, rescind the issuance of common stock in connection with that merger to HBOC shareholders and seeks monetary relief to compensate the long-term shareholders of McKesson stock identified above for their damages suffered as a result of the misleading Joint Proxy Statement.

Milberg Weiss Bershad Hynes & Lerach LLP, and several other law firms who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud, represent the plaintiff.

Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 30 years. The firm has offices in San Francisco, Los Angeles, San Diego, New York, and Boca Raton and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district, or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries, which, in the aggregate, total approximately $2 billion.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach, Reed Kathrein Darren Robbins John Grant or Chris Seefer of Milberg Weiss at 800/449-4900 or via e-mail at wsl@mwbhl.com.
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 5, 1999
Words:797
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