Walgreens Boots Alliance to pay $34.M penalty to SEC to resolve probe

Walgreens Boots Alliance announced that the company has reached an agreement with the SEC to fully resolve an investigation into forward-looking financial goals and related disclosures by Walgreen Co. 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 CEO and then 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 $34.5M 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.
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