Walgreen Co. has reached a $105 million settlement in a class-action lawsuit led by lead plaintiff Industriens Pensionsforsikring, Copenhagen, Denmark, that had accused the retailer of misleading shareholders regarding the effect of generic drug prices on its pharmacy business.
The preliminary settlement was filed June 23 in U.S. District Court in Chicago.
The 205.7 billion Danish kroner ($29 billion) Danish pension fund had originally filed a consolidated class-action complaint in August 2015, alleging Walgreen had misstated earnings targets based on its announcement in 2012 of its strategic partnership and potential merger with Switzerland-based pharmacy company Alliance Boots GmbH, without providing information on undisclosed problems connected with inflation of generic drug prices.
The class period of March to August 2014 covered the announcements of Walgreen's second- and third-quarter earnings and statements by the company made in the interim.
Jennifer L. Joost, partner at Kessler Topaz Meltzer & Check, attorney for plaintiffs, and Walgreen officials, could not be immediately reached for comment.