Walgreens to pay multi-million dollar fine
Walgreens Boot Alliance pays multi-million dollar fine to avoid an Securities and Exchange Commission Investigation.
According to CNBC, Walgreens agreed to pay a $34.5 million fine to settle an investigation by the Securities and Exchange Commission (SEC).
In settling, Walgreens neither admits nor denies the allegations, according to CNBC. The SEC was investigating whether the drugstore chain's former chief executive and former chief financial officer failed to provide adequate warning about the risks associated with Walgreens' planned merger with Alliance Boots.
According to CNBC, the SEC alleged the two former executives, then-Chief Executive Officer Greg Wasson and then-Chief Financial Officer Wade Miquelon, acted "negligently" when giving financial forecasts in June, October and December of 2013 and March of 2014 during earnings calls. Both Wasson and Miquelon are ordered to pay a $160,000 fine.
When Walgreens announced a two-step merger with Alliance Boots in June 2012, it projected the combined company would generate $9 billion to $9.5 billion in combined adjusted operating income in the 2016 fiscal year. However, the SEC alleged that after completing the first step of the merger, Walgreens' internal forecasts showed the company was at a "significantly" greater risk of missing those estimates.
To read the full CNBC report, click here.