ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS
ACTION SUIT AGAINST WALGREEN CO.
April 10, 2015 – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/walgreenco/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Northern District of Illinois on behalf of purchasers of Walgreen Co. (“Walgreens”) (now trading as NYSE:WBA) common stock during the period between March 25, 2014 and August 5, 2014 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/walgreenco/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Walgreens and certain of its former officers with violations of the Securities Exchange Act of 1934. Walgreens is the largest drug retailing chain in the United States.
The complaint alleges that during the Class Period, defendants issued false and misleading statements and/or failed to disclose adverse information regarding Walgreens’ business and prospects, including the purported benefits of Walgreens’ strategic partnership with Alliance Boots GmbH. Specifically, 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 and 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 Walgreens stock traded at artificially inflated prices, reaching a high of $76.08 per share.
Then on August 4, 2014, Walgreens announced that its CFO, defendant Wade Miquelon, would be resigning. Two days later, on August 6, 2014, 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 that they had previously announced to investors. Following these disclosures, Walgreens’ 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 over 14% on volume of more than 84 million shares traded.
Plaintiff seeks to recover damages on behalf of all purchasers of Walgreens common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest securities class action judgment. Please visit http://www.rgrdlaw.com for more information.