What changed in this filing

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Item 3. Legal Proceedings

2024-02-20 compared with 2023-02-28 · 70 added, 32 removed, 53 unchanged (66% of the section changed)

Legal Proceedings

We are party to various legal claims that are ordinary and incidental to our bu siness, including relating to commercial disputes, employment, workers’ compensation, product liability, regulatory and other matters.

We establish reserves from time to time based upon periodic assessments of the potential outcomes of pending matters.

In addition, we believe that any potential liability arising from employment, product liability, workers’ compensation and other personal injury litigation matters would be adequately covered by our insurance, subject to policy limits, applicable deductibles, exclusions, and insurer solvency.

While the outcome of legal actions cannot be predicted with certainty, we believe, based on current knowledge and the advice of counsel, that the outcome of these currently pending matters, individually or in the aggregate, will not have a material adverse effect on our financial condition or results of ope rations.

O&M Halyard N95 Mask FDA Release

On April 5, 2023, we received a communication from the National Institute for Occupational Safety & Health (NIOSH) that products from one lot of a model (No.

46827) of surgical N95 respirator manufactured by O&M Halyard did not pass laboratory tests for fluid resistance and for filtration efficiency, and that products from one lot of another model (No.

46727) did not pass fluid resistance testing, but did pass filtration efficiency testing.

Our investigation determined that a limited number of lots were potentially implicated by the results of the NIOSH particulate filtration testing on model No.

46827, and that the vast majority of the products in those lots remained in our possession and under our control.

Those lots have been segregated for disposal.

We also determined that a limited quantity of products from one lot did reach the market.

Although products from that lot passed internal and external follow-up testing for filtration efficiency, we initiated a voluntary recall of the lot on August 9, 2023 out of an abundance of caution.

O&M Halyard has confirmed to NIOSH that the particle filtration issue was isolated to the identified lots.

On April 12, 2023, the FDA recommended that consumers, health care providers, and facilities not use the two models (model numbers 46827 and 46727) of O&M Halyard surgical N95 respirators due to concerns about fluid resistance performance.

In addition, the FDA also recommended against using certain of our surgical, procedure and pediatric face masks when fluid resistance is required.

On or about that date, we voluntarily stopped the sale in the U.S.

of the above-referenced surgical N95 respirators and similar models pending our investigation of the performance issues identified by the FDA and NIOSH.

Regulatory bodies in other non-U.S.

markets where we sell our facial protection products have inquired about the relevance of the FDA notification to products sold in their countries.

The FDA updated its recommendation on April 21, 2023, to permit use of the model No.

46727 of Halyard N95 respirators when fluid resistance is not required.

These items are included in our Products & Healthcare Services segment.

On September 29, 2023, the FDA updated its previous recommendation to consumers, health care providers and facilities regarding the above-referenced models of O&M Halyard surgical N95 respirators based on extensive testing and performance data provided by O&M Halyard.

Specifically, the FDA stated that both O&M Halyard respirator models could be used according to the product labeling for respiratory and fluid barrier protection to the wearer

(excluding the one lot of products that O&M Halyard voluntarily recalled on August 9, 2023).

Following the FDA’s update, we published a user notice on our website announcing the resumption of sales and shipments of O&M Halyard surgical N95 respirators, noting that the data provided to the FDA and NIOSH demonstrated that our products provide the levels of particle filtration and fluid resistance for which they are rated.

NIOSH reviewed and concurred with the facts set forth in our user notice published on September 29, 2023.

While the FDA recommendation did not materially affect our results of operations for 2023, there is a risk that these matters and any other safety concerns could have a material adverse effect on our results of operations, financial condition, or cash flows, including as a result of a significant volume of customer product returns and/or recall of products, implementation of corrective action plans, and/or other costly remedial actions in the U.S.

and elsewhere.

In addition, these matters could potentially have other negative impacts including:

government investigations and enforcement actions by the FDA or other U.S.

or international regulators or governmental entities;

the suspension or revocation of the authority to produce, distribute or sell products, and other sanctions;

losses due to patient claims, including product liability claims and lawsuits;

and customer claims related to their direct costs arising from supply disruption.

Other Litigation

We are party to various legal claims that are ordinary and incidental to our business, including ones related to commercial disputes, employment, workers’ compensation, product liability, regulatory, cybersecurity and other matters.

We maintain insurance coverage for cybersecurity, employment, product liability, workers’ compensation and other personal injury litigation matters, subject to policy limits, applicable deductibles and insurer solvency.

From time to time, we establish estimated liabilities based upon periodic assessment of the potential outcomes of pending matters.

Based on current knowledge and the advice of counsel, we believe that the liability recorded on the consolidated balance sheet as of December 31, 2023 for currently pending matters considered probable of loss, is sufficient.

In addition, we believe that other currently pending matters are not reasonably possible to result in a material loss, as payment of the amounts claimed is remote, the claims are immaterial, individually and in the aggregate, or the claims are expected to be adequately covered by insurance, subject to policy limits, applicable deductibles, exclusions, and insurer solvency.

Mine Safety Disclosures

7 unchanged sentences

From January 2000 through April 2015, Mr.

Pesicka served in various roles of increasing responsibility at Thermo Fisher Scientific Inc., including, most recently, Chief Commercial Officer and Senior Vice President from January 2014 to April 2015.

Pesicka served in various roles of increasing responsibility at Thermo Fisher Scientific Inc., including Chief Commercial Officer and Senior Vice President from January 2014 to April 2015.

Prior to that, he was President, Customer Channels at Thermo Fisher from July 2008 to January 2014 and President, Research Market from November 2006 to July 2008.

14 unchanged sentences

Bruni served from 2012 until 2018 in multiple vice president positions including Finance, Corporate FP&A, Continuous Improvement and Corporate Development at Patheon, a pharmaceutical services company.

Executive Vice President, Business Excellence

Executive Vice President, Business Excellence since March 2023.

Previously, Mr.

Starck served as Executive Vice President, President of Patient Direct Segment, & Chief Executive Officer of Apria since the Apria Acquisition on the Acquisition Date.

Prior to that, Mr.

Starck served as Chief Executive Officer of Apria, Inc.

since February 2015.

Prior to that, Mr.

Starck served as the Chief Executive Officer of Apria’s home respiratory therapy and home medical equipment segment since he joined Apria in April 2012.

From 2007 to 2012, Mr.

Starck served as Chief Executive Officer of CorVel Corporation (CorVel), an Orange County, California-based national provider of industry-leading workers’ compensation solutions for employers, third-party administrators, insurance companies and government agencies seeking to control costs and promote positive outcomes.

Starck joined CorVel in 2006 as President and Chief Operating Officer after serving Apria and a predecessor company in a series of progressively more responsible operations roles from 1992 to 2006.

Executive Vice President & Chief Executive Officer of Products & Healthcare Services Segment

3 unchanged sentences

Prior to that, Mr.

Long served as the Chief Executive Officer of Insys Therapeutics, Inc.

Long served as the Chief Executive Officer and as a board member of Insys Therapeutics, Inc.

(Insys) from April 2019 to November 8, 2019.

5 unchanged sentences

Long served as Vice President of Finance for multiple divisions at Thermo Fisher Scientific from 2006 until 2015.

Long has served as a Member of the Board of Directors of Insys, which filed for Chapter 11 bankruptcy protection in June 2019, from April 2019 until his resignation on November 8, 2019.

Executive Vice President, President of Patient Direct Segment, & Chief Executive Officer of Apria

Executive Vice President, President of Patient Direct Segment, & Chief Executive Officer of Apria since the Apria acquisition on March 29, 2022.

Previously, Mr.

Starck served as Chief Executive Officer of Apria, Inc.

since February 2015.

Perry Bernocchi (65)

Executive Vice President & Chief Executive Officer of Patient Direct Segment

Executive Vice President & Chief Executive Officer of Patient Direct Segment since March 2023.

Prior to that, Mr.

Starck served as the Chief Executive Officer of Apria's home respiratory therapy and home medical equipment segment since he joined Apria in April 2012.

From 2007 to 2012, Mr.

Starck joined CorVel in 2006 as President and Chief Operating Officer after serving Apria and a predecessor company in a series of progressively more responsible operations roles from 1992 to 2006.

Tammy Gomez (51)

Executive Vice President & Chief Human Resources Officer

Executive Vice President & Chief Human Resource Officer since joining Owens & Minor in July 2022.

Prior to that, Ms.

Gomez worked for Cardinal Health from 1999 to 2021 in various roles throughout her career.

She served as Senior Vice President, Global HR Center of Excellence & HR Services at the time of her exit.

Prior to that, Ms.

Gomez served in various human resources business partner roles supporting the company’s business and functional leaders.

Bernocchi served as President & Chief Executive Officer of the Company’s Byram Healthcare division, a position he held since 2009.

Bernocchi joined Byram Healthcare in 2006 as its Chief Operating Officer.

Prior to that, Mr.

Bernocchi served as Chief Operating Officer of Hemophilia Resources of America from 2000 to 2005 prior to its sale to Accredo Health.

Prior to that, Mr.

Bernocchi worked for Caremark/Coram from 1982 to 2000 in various roles of increasing responsibility in operations and general management within Coram Resource Network and as Senior Vice President of Operations.

Heath Galloway (47)

Executive Vice President, General Counsel & Corporate Secretary

Executive Vice President, General Counsel & Corporate Secretary since May 2023.

Pace joined Owens & Minor in 2016, serving as its Senior Vice President, General Counsel & Corporate Secretary.

Prior to joining the company, Mr.

Pace served as Executive Vice President, General Counsel & Secretary of Landmark Health, LLC, from July-December 2015.

From January 2014 to July 2015, he served in simultaneous roles of Senior Vice President, Strategy & General Counsel of Landmark Health, LLC and Executive Vice President, Corporate Development & General Counsel of Avalon Health Services, LLC, two Francisco Partners portfolio companies.

From March to October 2013, Mr.

Pace served as Executive Vice President, Operations & Compliance for Health Diagnostic Laboratory, Inc., which filed for Chapter 11 bankruptcy protection in June 2015.

Prior to that role, he served as Executive Vice President, General Counsel & Secretary of Amerigroup Corporation, where he worked from 2006-2013 until its sale to Anthem, Inc.

Prior to that, from April 2016 to May 2023, Mr.

Galloway served as Associate General Counsel.

Prior to that, Mr.

Galloway served as Assistant General

Counsel after joining Owens & Minor in February 2013.

Prior to joining Owens & Minor, Mr.

Galloway worked at Williams Mullen for nine years.

Senior Vice President, Corporate Treasurer

3 unchanged sentences

Before joining Owens & Minor, Mr.

Leon worked for the Brinks Company for nineteen years, beginning in 1998, where he served as Treasurer.

Leon worked for the Brinks Company for 19 years, beginning in 1998, where he served as Treasurer.

Senior Vice President, Corporate Controller & Chief Accounting Officer

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 3. Legal Proceedings