AmerisourceBergen Board to Face Investor Suit Over Syringe Scam

AmerisourceBergen Corp.'s board must face claims that it looked the other way while a subsidiary relied on kickbacks and sham prescriptions to sell unsterile cancer drugs pooled from the overflow of pre-filled syringes, a Delaware Chancery Court judge ruled Monday.

“It is true that directors are not omniscient, that their eyes cannot be on every sparrow, and that not every failure of oversight is the result of bad faith,” Vice Chancellor Sam Glasscock III wrote. “Here, however, ABC operated a criminal enterprise.”

The lawsuit, filed by a pension fund invested in ABC, accuses its board of intentionally ignoring the scheme ...