LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Walgreens Boots Alliance, Inc. (“Walgreens” or the “Company”) (NASDAQ: WBA) common stock between July 1, 2021 and June 26, 2024, inclusive (the “Class Period”). Walgreens investors have until November 18, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On June 27, 2023, Walgreens released its third quarter fiscal 2023 financial results, falling below analysts’ expectations. Additionally, the Company lowered its fiscal 2023 guidance due to “a slower profit ramp for U.S. health care” related to “reduced COVID, cold and flu season and softer market demand.”
On this news, Walgreens’ stock price fell $2.95, or 9.3%, to close at $28.64 per share on June 27, 2023, thereby injuring investors.
Then, on January 4, 2024, Walgreen released its first quarter fiscal 2024 financial results, falling short of expectations due to “operations in their co-located VillageMD/Walgreens centers.” On this news, Walgreens’ stock price fell $1.31, or 5.1%, to close at $24.26 per share on January 4, 2024.
Then, on June 27, 2024, Walgreens released its third quarter fiscal 2024 financial results, once again falling below analysts’ expectations and lowering its fiscal 2024 guidance. The Company stated that, while it “believe[s] in the future of [VillageMD] and intend[s] to remain an investor and partner . . . as part of [its] persistent focus on value creation for [Walgreens], [it is] collaborating with leadership toward an endpoint.”
On this news, Walgreens’ stock price fell $3.47, or 22.2%, to close at $12.19 per share on June 27, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) despite repeated assurances, Walgreens was not disciplined about deploying capital to grow the U.S. Healthcare segment and did not know how to work with and scale the VillageMD model; (2) Walgreens was not able to profitably scale VillageMD to support the Company’s long-term growth initiatives; (3) Walgreens’ rollout of VillageMD clinics was not going according to plan; (4) Walgreens’ U.S. Healthcare segment was experiencing slower growth than expected because Walgreens had oversaturated markets with VillageMD clinics, leading these newly created medical clinics to be understaffed and see fewer patients; (5) Walgreens executives had failed to manage investor expectations regarding the negative impact that the VillageMD expansion would have on Walgreens’ short-term profits, overstatement of the value of VillageMD, and the risk that the Company would be forced to divest part or all of its stake in VillageMD; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Walgreens common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com.
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