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Legal Proceedings
6 Months Ended
Jun. 25, 2022
Legal Proceedings [Abstract]  
Legal Proceedings
Note 9 – Legal Proceedings
Henry Schein, Inc. has been named as a defendant in multiple lawsuits
 
(currently less than one-hundred and fifty
(
150
); in less than half of those cases one or more of Henry Schein,
 
Inc.’s subsidiaries is also named as a
defendant).
 
Generally, the lawsuits allege that the manufacturers of prescription opioid drugs engaged in a false
advertising campaign to expand the market for such drugs and their own
 
market share and that the entities in the
supply chain (including Henry Schein, Inc and its affiliated companies) reaped financial
 
rewards by refusing or
otherwise failing to monitor appropriately and restrict the improper distribution
 
of those drugs.
 
These actions
consist of some that have been consolidated within the MultiDistrict Litigation
 
(“MDL”) proceeding In Re National
Prescription Opiate Litigation (MDL No. 2804; Case No. 17-md-2804)
 
and are currently stayed, and others which
remain pending in state courts and are proceeding independently and outside
 
of the MDL.
 
At this time, the
following cases are set for trial: the action filed by Mobile County Board
 
of Health, et al., in Alabama state court,
which is currently set for a jury trial on January 9, 2023; the action filed
 
by DCH Health Care Authority, et al. in
Alabama state court, which is currently scheduled for a jury trial on July 24, 2023;
 
and the action filed by Florida
Health Sciences Center, Inc. (and
38
 
other hospitals located throughout the State of Florida) in
 
Florida state court,
which is currently scheduled for a jury trial in October 2024.
 
In June 2022, we settled
twenty-six
 
cases filed by
hospitals in West Virginia,
 
and settled with
one
 
additional hospital, for a total amount of
three-hundred thousand
dollars.
 
The
twenty-six
 
cases have been dismissed.
 
Of Henry Schein’s 2021 sales of approximately $
12.4
 
billion,
sales of opioids represented less than
two-tenths
 
of 1 percent.
 
Opioids represent a negligible part of our business.
 
We intend to defend ourselves vigorously against these actions.
From time to time, we may become a party to other legal proceedings,
 
including, without limitation, product
liability claims, employment matters, commercial disputes, governmental
 
inquiries and investigations (which may
in some cases involve our entering into settlement arrangements or consent
 
decrees), and other matters arising out
of the ordinary course of our business.
 
While the results of any legal proceeding cannot be predicted with certainty,
in our opinion none of these other pending matters are currently
 
anticipated to have a material adverse effect on our
consolidated financial position, liquidity or results of operations.
As of June 25, 2022, we had accrued our best estimate of potential
 
losses relating to claims that were probable to
result in liability and for which we were able to reasonably estimate a
 
loss.
 
This accrued amount, as well as related
expenses, was not material to our financial position, results of operations
 
or cash flows.
 
Our method for
determining estimated losses considers currently available
 
facts, presently enacted laws and regulations and other
factors, including probable recoveries from third parties.