FDD Items 3 & 4 · 2025 filing
Medicap Pharmacy litigation history
What Medicap Pharmacy 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
- 3
- Item 3, as counted in the filing
- Largest disclosed settlement
- $275.0M
- 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
No Medicap-specific litigation disclosed. Three MSI affiliate arbitrations against franchisees for failure to pay fees under franchise agreements, all settled. Extensive Cardinal Health parent litigation including SEC settlement ($35M penalty), national opioid settlement ($6.3B+ total), and IVC filter product liability ($275M settlement). All resolved or ongoing at parent level only.
Disclosure signals that moved the score
How this shows up in the verdict
- Parent company Cardinal Health faces SEC enforcement action for accounting practices and major opioid/IVC filter litigation exposing franchisees to reputational and operational risk
- MSI litigation against franchisees for non-payment indicates cash flow problems among existing operators
- Going concern status is 'False' (unclear if this means going concern is NOT assured or data is missing), raising sustainability questions
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
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?