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Corporations Keyed to Rhee
In re Caremark International Inc. Derivative Litigation
Citation:
698 A.2d 959 (Del. Ch. 1996)Facts
Caremark, a publicly held corporation, was involved in two main health care business areas: patient care and managed care services. In August 1991, the HHS Office of the Inspector General (OIG) initiated an investigation of Caremark. Caremark was served with a subpoena requiring the production of documents. Caremark appears to have paid physicians fees for monitoring patients under Caremark’s care. In March 1992, the Department of Justice joined the OIG investigation. In 1994, Caremark was charged in an indictment with multiple felonies and it began settlement negotiations with government entities. Caremark paid $250 million to settle the claims against it.
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