Securities Class Action Filed Against Walgreen Co.
Violations of federal securities laws as a result of a series of materially false statements. The Complaint alleges that, during the Class Period, Defendants issued false and misleading statements and/or failed to disclose adverse information regarding Walgreen’s business and prospects, including the purported benefits of its strategic partnership with Alliance Boots GmbH. Specifically, it is alleged that Defendants publicly announced goals for fiscal year 2016 of $1 billion in combined synergies and $9 to $9.5 billion in adjusted earnings before interest and taxes (“EBIT”) for the combined entity, but concealed a $1.8 to $2.3 billion fiscal year 2016 earnings shortfall, as well as the reasons for the shortfall, from the investing public. As a result of Defendants’ false and misleading statements and/or omissions during the Class Period, the price of Walgreen stock traded at artificially inflated prices, reaching a high of $76.08 per share. The Complaint states that on August 4, 2014, Walgreen announced that its CFO, Defendant Wade Miquelon, would be resigning; two days later, Defendants lowered the fiscal year 2016 EBIT target to $7.2 billion, $1.8 billion below the low-end and $2.3 billion below the high-end of the range they had previously announced to investors. Following these disclosures, the Company’s share price declined, falling from a close of $69.12 per share on August 5, 2014 to a close of $59.21 per share on August 6, 2014, a drop of more than 14% on volume of more than 84 million shares traded. Filed in N.D. Ill.
Lead Plaintiff Deadline: The deadline to file for lead plaintiff in this action is 6/9/2015.
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