SAN DIEGO, Sept. 18, 2024 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of purchasers of Walgreens Boots Alliance, Inc. (NASDAQ: WBA) (“Walgreens” or the “Company”) common stock between July 1, 2021 and June 26, 2024, inclusive (the “Class Period”), charging the Company and certain of its current and former senior executives with violations of the federal securities laws (collectively, “Defendants”).
Walgreens investors have until November 18, 2024 to seek appointment as lead plaintiff of the Walgreens class action lawsuit.
If you purchased Walgreens common stock between July 1, 2021 and June 26, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/walgreens-2/.
You can also contact DiCello Levitt attorneys Brian O’Mara or Hani Farah by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
Walgreens is one of the largest providers of retail, pharmacy, and healthcare services across the United States and internationally, with operations in three business segments: U.S. Retail Pharmacy; International; and U.S. Healthcare. In 2019, Walgreens announced a collaboration with VillageMD in which VillageMD would operate primary care facilities next to Walgreens stores. The purported success of the partnership led to a $1 billion investment by Walgreens into VillageMD and an expansion of the relationship.
The Walgreens lawsuit alleges that: (1) despite repeated assurances, Walgreens inefficiently deployed capital meant to grow its U.S. Healthcare segment and did not know how to implement and expand its partnership with VillageMD; (2) Walgreens was not able to profitably scale VillageMD; (3) Walgreens’ rollout of VillageMD clinics was not proceeding as planned; (4) Walgreens’ U.S. Healthcare segment was growing slower than anticipated because Walgreens built too many VillageMD clinics, causing these newly created medical clinics to be understaffed and see fewer patients; and (5) Walgreens executives had failed to manage investor expectations about the negative impact that the VillageMD rollout would have on the Company’s short-term profits, the exaggeration of VillageMD’s value, and the risk that the Company would be required to divest its take, in whole or in part, in VillageMD.
The truth began to emerge on June 27, 2023, when Walgreens announced disappointing earnings results for its fiscal third quarter of 2023, reduced its 2023 guidance, and revealed the Company was “experiencing a slower profit ramp for U.S. Health Care” due to VillageMD’s underperformance. On this news, the price of Walgreens common stock fell $2.95 per share, or 9.3%. However, the Company continued to misrepresent its success in scaling the VillageMD partnership, which kept Walgreens’ stock price inflated.
Then, on July 27, 2023, Walgreens announced the departure of its Chief Financial Officer. On this news, the price of Walgreens common stock fell $0.83 per share, or nearly 3%. Similarly, on September 1, 2023, Walgreens announced the departure of its Chief Executive Officer (“CEO”), causing the Company’s stock price to decline $1.88 per share, or 7.4%.
On January 4, 2024, Walgreens announced disappointing financial results for its fiscal first quarter of 2024, which analysts attributed to operations in the VillageMD clinics. On this news, the price of Walgreens common stock fell $1.31 per share, or 5%.
Finally, on June 27, 2024, Walgreens announced disappointing financial results for its fiscal third quarter of 2024. On that same day, in an interview with The Wall Street Journal, Walgreens’ new CEO announced the Company would reduce its stake in VillageMD and would no longer be its majority owner. On this news, the price of Walgreens common stock fell $3.47 per share, or 22%.
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