Walmart Inc. Class Action Lawsuit
- Company Name
- Walmart Inc.
- Stock Symbol
- Class Period
- March 30, 2016 to December 22, 2020
- District of Delaware
The Walmart Inc. class action lawsuit charges Walmart and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Walmart publicly traded securities between March 30, 2016 and December 22, 2020, inclusive (the “Class Period”). The Walmart class action lawsuit was commenced on January 20, 2021 in the District of Delaware and is captioned Stanton v. Walmart Inc., No. 21-cv-00055.
Walmart engages in retail and wholesale operations in various formats worldwide.
The Walmart class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Walmart knowingly filled prescriptions that were issued by so-called “pill-mill” prescribers; (2) Walmart filled thousands of prescriptions that showed obvious red flags, including highly dangerous cocktails of drugs; (3) Walmart’s managers made it difficult for its pharmacists to comply with their legal obligations by pressuring them to fulfill as many orders as possible; (4) hence, Walmart’s pharmacy revenues were inflated because Walmart filled thousands of invalid prescriptions in violation of the Controlled Substance Act dispensing requirements; (5) the aforementioned conduct would subject Walmart to regulatory scrutiny; and (6) as a result, defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On December 22, 2020, while the market was open, the U.S. Department of Justice (“DOJ”) announced in a press release that it has filed a lawsuit regarding Walmart’s role in the opioid epidemic. The DOJ press release stated that “as the operator of its pharmacies, Walmart knowingly filled thousands of controlled substance prescriptions that were not issued for legitimate medical purposes or in the usual course of medical practice, and that it filled prescriptions outside the ordinary course of pharmacy practice.” The DOJ’s press release further stated that “Walmart received hundreds of thousands of suspicious orders that it failed to report as required to by the [Drug Enforcement Administration].” On this news, Walmart’s stock price declined over the next two trading days, damaging investors.
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