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HENRY SCHEIN INC

HSIC

Health Care

6

exclusion reasons

3 themes

Corporate Misconduct (4) Harmful Products (1) Surveillance Capitalism (1)
HSIC Health Care Current as of April 2026

This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.

Henry Schein, a wholesale distributor registered with the DEA as a controlled substances distributor, paid a $500,000 civil penalty in December 2021 to resolve DOJ allegations of Controlled Substances Act violations. Between 2012 and 2018, Henry Schein failed to identify, report, and halt suspicious orders from five practitioners across five states who were later convicted or disciplined for drug crimes. The company shipped approximately 25,400 hydrocodone pills and 3,600 Xanax pills to a West Virginia dentist (Scott Edmonds) who admitted purchasing them to feed his personal addiction — after Henry Schein personnel cleared him to keep buying following a 2016 inspection revealing improper drug accounting. It sold over 100,000 hydrocodone pills to an Alabama doctor (Elizabeth Korcz) who, along with her husband, pled guilty to conspiracy to distribute controlled substances and received a 52-month sentence. Across all five practitioners, Henry Schein distributed over 200,000 hydrocodone pills to customers showing clear red flags of abuse and diversion.

Henry Schein agreed to pay $1.1 million for allegedly violating the Civil Monetary Penalties Law by providing improper remuneration to customers in the form of points redeemable for products and services.

Workplace Discrimination
Since Mar 8, 2026

Henry Schein, Inc., one of America's largest healthcare product distributors, has faced multiple employment discrimination lawsuits spanning different protected classes and jurisdictions. In 2008, James Rogers filed a civil action (Case No. 08-2497, S.D. W.Va.) alleging sexual harassment, sexual discrimination, libel, slander, and intentional infliction of emotional distress. In 2021, a lawsuit filed in Alameda County, California Superior Court alleged wrongful termination and retaliation after an employee reported that a top-earning Henry Schein sales representative repeatedly referred to the employee's Asian American wife — a well-known dentist and Henry Schein customer — as "sushi." The complaint alleged the offensive sales representative was not only allowed to continue working but was permitted to wage a campaign of false statements against the reporting employee, who was ultimately forced to resign. The cases span gender-based harassment and racial discrimination with retaliation, separated by over a decade.

Corruption & Fraud
Since Mar 8, 2026

Henry Schein Inc., the world's largest distributor of healthcare products to office-based practitioners, has accumulated $41M+ in penalties since 2000 per ViolationTracker. Enforcement actions include a $35M antitrust settlement (2020) for conspiring with Benco and Patterson to restrain competition and inflate dental product prices, a $500K controlled substances settlement for improper opioid distribution (2012-2018), and FTC action for deceptive encryption claims in its Dentrix dental software. The pattern reflects systemic compliance failures across antitrust, controlled substances, and consumer protection.

Data & Privacy
Since Oct 1, 2023

Between late 2023 and early 2025, Henry Schein suffered catastrophic series of ransomware attacks by BlackCat (ALPHV) group. Breach compromised personal and protected health information of 166,432 individuals (names, bank accounts, SSNs). In February 2025, $2.9M settlement approved for class-action alleging cybersecurity failures, specifically after hackers re-encrypted data during initial restoration.

Anticompetitive Practices
Since Jun 1, 2019

Henry Schein was a primary defendant in massive MDL alleging conspiracy with Benco Dental and Patterson Companies to fix price margins and boycott buying groups. In June 2019, $80M class-action settlement received final approval. FTC successfully litigated administrative complaint concluding the trio "unreasonably restrained price competition" for dental products in the United States.

Research Sources 12 organizations

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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.

This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.

Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.