The Peiffer Rosca Wolf law firm has commenced an investigation into
Walgreen Co. (NYSE: WAG) (“Walgreens”), the U.S.’s largest drugstore
retailer. Since its 2014 merger with Alliance Boots GmbH (“Alliance
Boots”), a similar business with operations outside the United States,
Walgreens has been known as Walgreens Boots Alliance, Inc.
A securities class action has been filed against Walgreens on behalf of
investors who purchased Walgreens’ common stock from March 25, 2014
through August 5, 2014, inclusive (the “Class Period”). The action
alleges that Walgreens made false and misleading statements about the
benefits of the Alliance Boots merger and overstated its fiscal year
2016 earnings target, which was based on the purported benefits of the
corporate combination. As a result, Walgreens’ stock allegedly traded at
artificially inflated prices.
The truth began to be revealed on August 4, 2014, when Walgreens
announced that its Chief Financial Officer (“CFO”), Wade Miquelon, would
be resigning from his role that day. Two days later, on August 6, 2014,
Walgreens dramatically lowered its earnings forecast for fiscal year
2016 to $7.2 billion—$1.8 billion below the low-end of its target range.
Walgreens attributed the shortfall to a decline in reimbursement rates
and lower profitability from generic drugs. Separately, Walgreens
disclosed that it would remain incorporated in Illinois and would not
pursue an overseas reorganization for potential tax benefits.
Walgreens’ stock price fell sharply in connection with these
revelations, causing investors to incur significant losses.
Following CFO Miquelon’s resignation, media outlets reported that he was
pressured to leave Walgreens after his group “bungled” the 2016 earnings
forecast. In October 2014, Miquelon brought a defamation suit against
Walgreens alleging that the Company had wrongfully ousted him and blamed
him for the earnings shortfall. His complaint claimed that the earnings
miss was neither a surprise nor the result of a forecasting error but,
rather, the result of a long-deferred announcement of poor performance
stemming from integration issues concealed by management for several
months.
What You May Do
If you have information that would assist the Peiffer Rosca Wolf law
firm in its investigation or would like to discuss your legal rights,
you may, without obligation or cost to you, contact the Peiffer Rosca
Wolf attorneys Alan Rosca or Joe Peiffer by email at arosca@prwlegal.com
or by telephone, toll free at 888-998-0520.
If you purchased or acquired Walgreens common stock during the Class
Period as defined above, you are a member of the “Class” and may be able
to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must
be filed with the U.S. District Court for the Northern District of
Illinois by June 9, 2015. A lead
plaintiff is a court-appointed representative for absent members of the
Class. You do not need to seek appointment as lead plaintiff to share in
any Class recovery in this action. If you are a Class member and there
is a recovery for the Class, you can share in that recovery as an absent
Class member. You may retain counsel of your choice to represent you in
this action.
If you would like to consider serving as lead plaintiff or have any
questions about this lawsuit, you may contact Alan Rosca at 888-998-0520
or arosca@prwlegal.com.
About Peiffer Rosca Wolf
Peiffer Rosca Wolf Abdullah Carr & Kane, A Professional Law Corporation
(“Peiffer Rosca Wolf”) prosecutes securities actions throughout the U.S.
To learn more about the Peiffer Rosca Wolf law firm, you may visit www.securitieslitigators.com.
Attorney Advertising. Prior cases do not guarantee a similar outcome.
Please visit our website for important disclosures, office locations,
and lawyer admissions.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150601006844/en/
Copyright Business Wire 2015