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WBA.US
id: 316

Walgreen (WBA) $105 Million Shareholder Settlement

$105,000,000
Cash Settlement
N.D. Illinois
Court
1:15-cv-3187
Case number
04/17/2014
Class period Start
08/05/2014
Class period End
11/05/2022
Claim deadline

Walgreens (WBA) paid $105 million to settle a securities class action lawsuit accusing the Company of deceiving investors about business prospects.

The original complaint alleged that:

  • the Company issued false and misleading statements and/or failed to disclose material information regarding Walgreens’ business and prospects, including the purported benefits of Walgreens’ strategic partnership with Alliance Boots GmbH.

  • Walgreens publicly announced goals for the fiscal year 2016 of $1 billion in combined synergies and $9 to $9.5 billion in adjusted EBIT for the combined entity but concealed a $1.8 to $2.3 billion fiscal year 2016 earnings shortfall and the reasons for the shortfall from the investing public.

As a result, the price of Walgreens stock traded at artificially inflated prices.

After several years of court proceedings, Walgreen agreed to settle with investors to avoid further litigation.

Case Type
US Securities Class Action
Case Status
Distribution Preparation
Alleged Offence
Misleading Statements, 
Failure to Disclose, 
Omissions
Suspected Party
Directors, 
Management, 
Other
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.72
Plaintiffs
Washtenaw County Employees’ Retirement System
Attorneys
Kessler Topaz Meltzer & Check LLP (California), Robbins Geller Rudman & Dowd LLP
Judge
Hon. Sharon Johnson Coleman
Administrator
A.B. Data Ltd
Court hearing date
10/07/2022
Trades matching type
FIFO

Frequently Asked Questions

Who is eligible for this settlement?

All persons and entities who purchased or otherwise acquired Walgreens common stock between April 17, 2014 and August 5, 2014, inclusive, and were damaged thereby.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

How much will my payment be?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $0.72 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $2.88 per share.

What is 11th Estate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

1. Prepare documents for your payout

2. Audit the claim and make sure you get the maximum possible payout

3. File a claim with the settlement administration

4. Correspond with the settlement administration to resolve emerging issues

5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.