As Cardinal Health (CAH) struggles to resolve its role in the U.S. opioid crisis, the distributor is facing fresh criticism for re-appointing a board member who previously served at a time when the company was fined by federal authorities for allowing controlled substances to be diverted.
Last December, the wholesaler named J. Michael Losh as an independent director and chair of its audit committee which, among other things, helps the board monitor compliance with legal and regulatory requirements. However, a skills matrix in the Cardinal proxy statement noted Losh does not have the operations experience to help the board’s understanding of distribution operations (see page 14).
Moreover, his track record has angered the International Brotherhood of Teamsters, which is a member of Investors for Opioid Accountability, a coalition of institutional investors that is pushing wholesalers and pharmacies to take steps to rein in the opioid crisis. In a letter filed late last week with the Securities and Exchange Commission, the Teamsters urged Cardinal shareholders to reject Losh.
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