SOURCE: Stull, Stull & Brody

June 05, 2008 18:57 ET

Stull, Stull & Brody Announces Class Action on Behalf of Shareholders of Walgreen Co.

NEW YORK, NY--(Marketwire - June 5, 2008) - Attorney Advertising. Notice is hereby given that a class action has been commenced in the United States District Court for the Northern District of Illinois on behalf of purchasers of the common stock of Walgreen Co. ("Walgreen" or the "Company") (NYSE: WAG) between June 25, 2007 and November 29, 2007 (the "Class Period").

Stull, Stull & Brody has substantial experience representing employees who suffered losses from purchases of their employer's stock in their 401(k) plans. If you bought Walgreen stock through your Walgreen retirement account and have information or would like to learn more about these claims, please contact us.

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 $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 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.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Walgreen's common stock during the Class Period, which is between June 25, 2007 and November 29, 2007. If you purchased or otherwise acquired Walgreen's common stock during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Walgreen's common stock during the Class Period, you may request that the Court appoint you as lead plaintiff no later than sixty days from April 16, 2008.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

Contact Information

  • Contact:
    Tzivia Brody, Esq.
    Stull, Stull & Brody
    Email Contact
    1-800-337-4983
    fax: 212/490-2022
    6 East 45th Street
    New York, NY 10017