DEERFIELD, Ill.–(BUSINESS WIRE)–Walgreens Boots Alliance, Inc. (Nasdaq: WBA) announced today that the
company has reached an agreement with the Securities and Exchange
Commission (SEC) to fully resolve an investigation into forward-looking
financial goals and related disclosures by Walgreen Co. (Walgreens). The
disclosures at issue were made prior to the merger with Alliance Boots
and the establishment of Walgreens Boots Alliance on December 31, 2014.
The settlement does not involve any of Walgreens Boots Alliance’s
current officers or executives, nor does it allege that anyone acted
intentionally or recklessly at any time.
In agreeing to the settlement, Walgreens Boots Alliance neither admits
nor denies the SEC’s allegations that Walgreens and its then Chief
Executive Officer (CEO) and then Chief Financial Officer (CFO) acted
negligently in connection with statements made in the June 2013, October
2013, December 2013 and March 2014 earnings calls, by failing to
adequately disclose the increased risk to achieving certain of Walgreens
previously stated fiscal 2016 financial goals. Following warnings in
December 2013 and March 2014, Walgreens withdrew those fiscal 2016 goals
in June 2014.
Pursuant to the agreement with the SEC, Walgreens Boots Alliance
consented to the SEC’s issuance of an administrative order, and the
company will pay a $34.5 million penalty, which has been fully reserved
for, while the Walgreens then CEO and then CFO separately resolved the
matter with the SEC.
Walgreens Boots Alliance cooperated fully with the SEC’s investigation
and believes the agreement is in the best interest of the company.
Notes to Editors:
About Walgreens Boots Alliance
Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led,
health and wellbeing enterprise. The company’s heritage of trusted
health care services through community pharmacy care and pharmaceutical
wholesaling dates back more than 100 years.
Walgreens Boots Alliance is the largest retail pharmacy, health and
daily living destination across the U.S. and Europe. Walgreens Boots
Alliance and the companies in which it has equity method investments
together have a presence in more than 25* countries and employ more than
385,000* people. The company is a global leader in pharmacy-led, health
and wellbeing retail and, together with the companies in which it has
equity method investments, has approximately 14,500** stores in 11*
countries as well as one of the largest global pharmaceutical wholesale
and distribution networks, with more than 390* distribution centers
delivering to more than 230,000*** pharmacies, doctors, health centers
and hospitals each year in more than 20* countries. In addition,
Walgreens Boots Alliance is one of the world’s largest purchasers of
prescription drugs and many other health and wellbeing products.
The company’s portfolio of retail and business brands includes
Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as
increasingly global health and beauty product brands, such as No7, Soap
& Glory, Liz Earle, Sleek MakeUP and Botanics.
More company information is available at www.walgreensbootsalliance.com.
* As of August 31, 2017, using publicly available information for
** As of June 28, 2018.
*** For 12 months
ending August 31, 2017, using publicly available information for
Walgreens Boots Alliance, Inc.
+1 847 527 2210
Gradwell and Ashish Kohli
+1 847 315 2922