Medicap Pharmacy litigation history

Parent, affiliates, master franchisor and subfranchisor

Pending (3)

• In Re: National Prescription Opiate Litigation

  pending

  Cardinal Health, Inc. · filed 2017 · United States District Court for the Northern District of Ohio · 17-MV-2804

  “… United States District Court for the Northern District of Ohio, 17-MV-2804, consolidated December 12, 2017, et al. As of June 30, 2025, Cardinal Health had $4.9 billion accrued for the opioid related matters described below”Page 15 of the 2025 FDD, Item 3

  Outcome: “In April 2022, Cardinal Health along with two other national distributors (collectively, the “Distributors”), without admitting liability or wrongdoing, became parties to a National Opioid Settlement Agreement (the “NOSA”) to settle the vast majority lawsuits and claims brought by states and political subdivisions related to the distribution of opioid pain medications.” (page 16)

  Within this matter, as the filing narrates it

  • a bench trial in West Virginia brought by Cabell County and City of Huntington (no case caption or case number printed)

    pending

    names the parent company · Cardinal Health, Inc. · a federal court in West Virginia; on appeal to the Fourth Circuit Court of Appeals

    “West Virginia subdivisions and Native American tribes were not a part of the NOSA. In July 2022, a judgment in favor of the Distributors was entered in bench trial before a federal judge in West Virginia in a case brought by Cabell County and City of Huntington. Plaintiffs have appealed this decision to the Fourth Circuit Court of Appeals.”Page 16 of the 2025 FDD, Item 3

  Counted as one matter, the way Item 3 groups it.

• Cordis IVC Filter Litigation, Dunson, et al. v. Cordis Corporation, et al.

  pending

  Cardinal Health, Inc. · Superior Court of the State of California for the County of Alameda · RG16812476 (Lead Case No.)

  “… Superior Court of the State of California for the County of Alameda, Lead Case No. RG16812476. Cardinal Health has been named as a defendant in product liability lawsuits involving claims by plaintiffs that allege personal injuries associated with the use of inferior vena cava”Page 17 of the 2025 FDD, Item 3

  Outcome: “In April 2023, Cardinal Health executed a settlement agreement that, if certain conditions are satisfied, will resolve approximately 4,375 claims for $275 million.”

• insurance-coverage proceedings against Cardinal Health's insurers (no case caption, court or case number printed)

  pending

  Cardinal Health, Inc.

  “Cardinal Health is involved in ongoing legal proceedings with insurers related to their obligations to reimburse it for defense and indemnity costs in connection with the lawsuits described above. Cardinal Health received insurance recoveries related to these matters of $25 million and $34 million during fiscal 2025 and 2024, respectively.”Page 17 of the 2025 FDD, Item 3

Concluded (4)

• Medicine Shoppe International, Inc. v. Nunya Business Systems, Inc., Brian Prather and Jodie Prather

  settled

  Brought against a franchisee · Medicine Shoppe International, Inc. (MSI) · filed 2015-07-13 · American Arbitration Association · 01-15-0004-2335

  “AAA Case No. 01-15-0004-2335. On July 13, 2015, MSI filed an arbitration demand against Nunya Business Systems, Inc., Brian J. Prather, and Jodie L. Prather, based upon the franchisee’s failure to pay amounts due under its franchise agreement and its unilateral removal of its Medicine Shoppe signs.”Page 15 of the 2025 FDD, Item 3

  Outcome: “In June 2016, the parties reached a settlement agreement under which the franchisee converted to MSI’s current form of franchisee agreement and agreed to pay MSI $17,500, with $7,500 payable at the time of settlement and the remaining $10,000 payable in 12 monthly installments.”

• Medicine Shoppe International, Inc. v. J. Acra, Inc. and Julie Acra

  settled

  Brought against a franchisee · Medicine Shoppe International, Inc. (MSI) · filed 2014 · American Arbitration Association · 58 114 26 14

  “… American Arbitration Association, AAA Case No. 58 114 26 14. In January 2014, MSI filed an arbitration demand against J. Acra and its guarantor based on their failure to pay $583,000 due under their franchise agreement, and seeking a declaration that MSI complied with that agreement.”Page 14 of the 2025 FDD, Item 3

  Outcome: “In April 2016, the parties agreed to a settlement under which J. Acra liquidated its business and left the MSI system. MSI received approximately $165,000 as part of the liquidation.”

• Medicine Shoppe International, Inc. v. TODAMAR, Inc. and Timothy Gallegos

  settled

  Brought against a franchisee · Medicine Shoppe International, Inc. (MSI) · filed 2014 · American Arbitration Association · 58 114 28 14

  “… American Arbitration Association, AAA Case No. 58 114 28 14. In January 2014, MSI filed an arbitration demand against TODAMAR and its guarantor based on their failure to pay $311,000 due under TODAMAR’s franchise agreement, and seeking a declaration that MSI complied with that agreement.”Page 14 of the 2025 FDD, Item 3

  Outcome: “In February 2015, the parties reached a settlement agreement under which the franchisee agreed to convert to the form of franchise agreement that MSI had offered during the previous year, and to pay MSI $71,000. The arbitration action was dismissed but the franchisee failed to meet certain requirements of the settlement”

  Within this matter, as the filing narrates it

  • Medicine Shoppe International, Inc. v. TODAMAR, Inc. and Timothy Gallegos (No. 01-16-0000-8681)

    settled

    Brought against a franchisee · names the parent company · Medicine Shoppe International, Inc. (MSI) · filed 2016 · American Arbitration Association · 01-16-0000-8681

    “In March 2016, MSI subsequently filed another arbitration, Medicine Shoppe International, Inc. v. TODAMAR, Inc. and Timothy Gallegos, American Arbitration Association, AAA Case No. 01-16-0000-8681.”Page 14 of the 2025 FDD, Item 3

    Outcome: “In June 2016, the parties reached a settlement that allowed TODAMAR to leave the MSI system, but paying MSI $140,000, with $50,000 to be paid within 45 days and the remaining $90,000 payable in 12 monthly installments.” (page 15)

  Counted as one matter, the way Item 3 groups it.

• United States Securities and Exchange Commission v. Cardinal Health, Inc.

  judgment

  Government or regulatory action · Cardinal Health, Inc. · filed 2007-07-26 · United States District Court, Southern District of New York · 07-CV-6709

  “(Civil Action No. 07-CV-6709). On July 26, 2007, the United States Securities and Exchange Commission (“SEC”) filed a complaint against Cardinal Health, alleging that Cardinal Health and certain members of its corporate management engaged in a fraudulent earnings and management scheme and other improper accounting and disclosure practices”Page 15 of the 2025 FDD, Item 3

  Outcome: “The final judgment, which was entered by the Court on August 2, 2007, enjoined Cardinal Health from future violations of the federal securities laws, required disgorgement in the amount of $1, and required Cardinal Health to pay a civil penalty of $35 million.”