HARTFORD, Conn., April 16, 2008 (Lawfuel) — The law firm of
Schatz Nobel Izard P.C., which has significant experience representing
investors in prosecuting claims of securities fraud, announces that a
lawsuit seeking class action status has been filed in the United States
District Court for the Northern District of Illinois on behalf of all
persons who purchased the common stock of Walgreen Co. (“Walgreen” or
the “Company”) (NYSE:WAG) between June 25, 2007 and November 29, 2007,
inclusive (the “Class Period”).
The Complaint charges that Walgreen and certain of its officers
violated federal securities laws. Specifically, the Complaint alleges
that 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, 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. On this news, the price of Walgreen
stock declined from $47.00 per share to $39.96 per share.
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 are a member of the class, you may, no later than June 16, 2008,
request that the Court appoint you as lead plaintiff of the class. A
lead plaintiff is a class member that acts on behalf of other class
members in directing the litigation. Although your ability to share in
any recovery is not affected by the decision whether or not to seek
appointment as a lead plaintiff, lead plaintiffs make important
decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the
defendants, to view a copy of the Complaint initiating the class action
or for more information about the case, class action cases in general,
and your rights, please contact Schatz Nobel Izard P.C. toll-free at
(800) 797-5499, or by e-mail at [email protected], or visit our website:
CONTACT: Schatz Nobel Izard P.C.
Wayne T. Boulton
Nancy A. Kulesa