FDD Items 3 & 4 · 2025 filing
Health Mart Inc. litigation history
What Health Mart Inc. disclosed about lawsuits, arbitrations and bankruptcy in the 2025 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 & 4 at a glance
What the filing discloses
- Cases disclosed
- 1
- Item 3, as counted in the filing
- Largest disclosed settlement
- $5.9B
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
Health Mart's Parent (McKesson) is a defendant in extensive opioid-distribution litigation (National Prescription Opiate MDL) brought by states, subdivisions, tribes, and private plaintiffs; Parent settled with 48 states/DC for up to ~$5.9B through 2038, plus separate settlements with Alabama (~$99M), West Virginia (~$84M additional), and Native American tribes (~$84M additional); a Baltimore jury verdict of $192M was reduced to $37M via remittitur and is being appealed; approximately 3 controlled-substance cases remain pending in federal court.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?