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Case ID: 5096 | Stocks | 07/18/2008
According to a press release dated April 16, 2008, the complaint charges Walgreen and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Walgreen operates a chain of drugstores in the United States.
Specifically, the complaint alleges that during the Class Period, Walgreen was experiencing a steady decline in the growth of its core business -- filling retail drug prescriptions. Throughout the Class Period, defendants failed to disclose declining growth rates for the Company’s generic prescription business and misled investors concerning the sustainability of Walgreen’s profits and sales. According to the complaint, unbeknownst to Walgreen’s public shareholders, underlying the erosion of Walgreen’s earnings was a material contract dispute with one of the nation’s largest third-party providers of prescription drug benefits – CVS Caremark (“Caremark”). During 2007, Walgreen disputed Caremark’s reimbursement rates for a number of prescription drug plans located primarily in the upper Midwestern U.S., which were negatively impacting the Company’s earnings. On October 1, 2007, prior to the market opening, Walgreen issued a press release announcing its financial results for its fourth fiscal quarter and fiscal year 2006. For the fourth quarter, the Company reported net income of $0.40 per share – far below analysts’ earnings expectations of $0.47 per share. In response to the announcement, the price of Walgreen stock declined from $47.00 per share to $39.96 per share, on extremely heavy trading volume. Then, on November 29, 2007, Walgreen announced that “[a]fter many months” of dispute with Caremark over the reimbursement rates for four prescription plans, Walgreen withdrew as a pharmacy provider from the plans. Following this announcement, shares of Walgreen common stock declined to a new three-year low of $36.59 per share at the close of trading on November 30, 2007. If you bought Walgreen Company securities and would like to obtain information about the Walgreen Company lawsuit, then you are invited to call Kahn Gauthier Swick, LLC toll free at (866) 467-1400 to speak with an attorney or visit www.kgscounsel.com. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest According to a press release dated November 20, 2008, the Company and certain of its officers and directors are charged with violations of the Securities Exchange Act of 1934. PharmaNet is a drug development services company that maintains offices and facilities in North America, Europe, South America, Asia, Africa and Australia and has clients in the branded pharmaceutical, biotechnology, generic drug and medical device industries.
The class has been certified in several consolidated actions filed against Ahsanti Goldfields, Ltd., on behalf of all persons who purchased or otherwise acquired the company’s Global Depository Receipts in transactions on stock exchanges in the US between April 21, 1997, and October 5, 1999. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities.
A class action has been filed against commercial banking and wealth management firm Gold Banc Corporation (Nasdaq:GLDB) and certain of its officers and directors by stockholders who owned the company's common stock as of February 25, 2004, the time of the company's acquisition agreement by Silver Acquisition Corporation. The actions claim that the defendants violated their fiduciary duties by permitting directors who had substantial restricted holdings to cash out their shares too early, and accepting a sale price that did not provide an adequate premium to public shareholders. A class action has been filed against medical testing company Laboratory Corporation of America Holdings (NYSE: LH) and certain of its officers and directors by stockholders who purchased the company's common stock between February 13 and October 3, 2002. If a company goes bankrupt after misusing its investors, the damaged security holders often go after anyone who assisted the bankrupt company. A class action has been filed against funding trustees Northwestern Trust and Investors Advisory Company and U.S. Bank, NA, by all persons who purchased securities in the form of promissory notes issued by Partners Mortgage Corporation (PMC) between November 7, 1997, and September 1, 2003. The action alleges that the trustees violated Washington-state securities laws by breaching their fiduciary duties to investors and allowing Partners to violate its own contracts. A class action has been filed against ProQuest Company (PQE), certain of its officers and directors by stockholders who purchased the company's common stock between January 9, 2003 and February 8, 2006. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. |
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