Six years in the past, Walgreens introduced a merger with Boots and advised buyers that it will make not less than $9 billion in revenue in 2016. The SEC says the corporate knew that quantity was a fantasy.
Walgreens’ former CEO Greg Wasson and CFO Wade Miquelon have been properly conscious that the pharmacy would miss that $9 billion goal badly, the SEC alleged on Friday. But Walgreens’ prime brass repeatedly affirmed the quantity to buyers in earnings calls all through 2013 and 2014.
Lastly, in August 2014, two years after it first introduced the Boots merger, Walgreens admitted it would not meet its revenue forecast. It drastically reduce its 2016 adjusted working revenue goal right down to $7.2 billion, surprising buyers. The inventory dropped greater than 14% when it introduced the change.
The SEC on Friday settled with Walgreens for deceptive its buyers. Walgreens agreed to pay a $34.5 million penalty.
“Over a number of reporting durations, senior Walgreens executives misled buyers concerning the…