CLEVELAND--(BUSINESS WIRE)--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 email@example.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 firstname.lastname@example.org.
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.