The government’s case against former HBOC chief executive officer and McKesson chairman Charles McCall, and former HBOC general counsel Jay Lapine, may suffer from the judge’s ruling, wrote The Recorder, since many of the witnesses against Hawkins were expected to testify in the upcoming trials. Four others have pleaded guilty, including two former HBOC co-presidents and CFOs, Albert Bergonzi and Jay Gilbertson. Hawkins is the first of seven former executives charged in the scandal to be cleared of criminal charges. In January, McKesson announced that it agreed to pay $960 million to settle a class-action lawsuit stemming from the restatement. McKesson had to restate its earnings Hawkins resigned later that year. The scheme was discovered after McKesson, the nation’s largest distributor of prescription drugs, bought software maker HBO & Co. They sought to do that by fraudulently recognizing revenue on a $20 million transaction between McKesson and Data General Corp., according to filings at the time. Specifically, Hawkins and other former McKesson officers were accused of taking part in a scheme to artificially inflate the company’s financial results for the fiscal quarter ended March 31, 1999.
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