HARTFORD, Conn., April 16, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of Illinois on behalf of all persons who purchased the common stock of Walgreen Co. ("Walgreen" or the "Company") (NYSE:WAG) between June 25, 2007 and November 29, 2007, inclusive (the "Class Period").
The Complaint charges that Walgreen and certain of its officers violated federal securities laws. Specifically, the Complaint alleges that 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, 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 of $0.40 per share -- far below analysts' earnings expectations of $0.47 per share. On this news, the price of Walgreen stock declined from $47.00 per share to $39.96 per share.
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 provider 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.
If you are a member of the class, you may, no later than June 16, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.