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Walmart Inc. Class Action Lawsuit

Company Name
Walmart Inc.
Stock Symbol
WMT
Class Period
March 30, 2016 to December 22, 2020
Court
District of Delaware

Case Summary

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.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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