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Pharmerica Provides Update On Amerisourcebergen Litigation

The following excerpt is from the company's SEC filing.

Continues to Pursue Its Case in Court

-- PharMerica Corporation (NYSE: PMC), a national provider of institutional, specialty home infusion, hospital and oncology pharmacy services, today provided an update on its ongoing litigation against AmerisourceBergen Drug Corporation (“ABDC”), the Company’s former wholesale supplier of pharmaceutical products. As previously disclosed, the litigation alleges breach of contract.

On April 1, 2016, the Jefferson County, Kentucky Circuit Court (the “Court”) handed down a partial summary judgment ruling that PharMerica honor ou tstanding invoices from ABDC for approximately $48.5 million. PharMerica had not paid the approximately $48.5 million in invoices, but instead withheld payment and applied the invoiced amounts against rebates and other amounts that PharMerica believes ABDC owes it and which are in excess of $48.5 million. The Court ruled that the contract with ABDC required PharMerica to pay drug invoices as billed by ABDC, even if ABDC failed to pay PharMerica rebates and other amounts owed to PharMerica.

The Court’s ruling has not, in any way, impaired PharMerica’s ability to ultimately recover damages the Company believes it is owed by ABDC as a result of the breach of ABDC’s contractual obligations to PharMerica. PharMerica is in the process of obtaining a bond that will prevent the Company from having to pay ABDC while an appeal is pending. In addition, the Court ruled that ABDC is required to produce documentation to PharMerica that ABDC had been withholding, which PharMerica believes will be important to its case.

PharMerica will appeal the Court’s partial summary judgment. The typical length of time for an appeal to be heard is six months to one year. The case will continue to proceed in the lower court while the appeal is pending. PharMerica remains confident in the merits of its case, believes the facts clearly support its position, and looks forward to the successful resolution of this matter.

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