Walgreens Boots Alliance has agreed to pay a $34.5 million penalty related to SEC allegations that former executives at the company “acted negligently” in relation to financial goals.
On Friday, Walgreens said it reached an agreement with the SEC to resolve an investigation into forward-looking financial goals and related disclosures that former chief executive officer Greg Wasson and former chief financial officer Wade Miquelon acted negligently in connection with statements made during several earnings calls in 2013 and 2014. The SEC alleged that the company failed to adequately disclose increased risk related to 2016 financial goals that were eventually withdrawn in June 2014.
As part of its agreement with the SEC, Walgreens consented to the organization’s issuance of an administrative order and will pay a $34.5 million penalty. Wasson and Miquelon separately resolved the matter with the SEC, according to a statement from Walgreens.
For Walgreens, the news comes shortly after the chain finished buying 1,932 Rite Aid stores in May, in a bid to expand its presence in the Northeast U.S.
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