Boston, MA 09/29/2014 (wallstreetpr) – According to reports, Walgreen Company (NYSE:WAG) has decided to resolve differences that it had in the past with its shareholders. It would not only the road for future transactions, but also would clear court’s hurdle as well. WAG announced on Friday that it would be looking forward to settling issues with a group of pension-fund shareholders, who filed a lawsuit against WAG and its board of directors.
Allegations put by plaintiffs:
Last year, a group of pension fund shareholders alleged that board of the company should have tried to stop various events that led to Walgreen Company (NYSE:WAG)’s settlement with federal authorities worth of $80 million in June 2013. The settlement regarded the distribution of painkillers. Right after the settlement event WAG reported its quarterly results in the month of July. In the quarterly report, it announced that it had decided to settle the issue; hence, it reached an agreement in principle with the other party.
The matter has not yet received the final approval from the court. There will be a hearing held on the December 9, 2014 in the U.S. District Court for Northern District of Illinois, Eastern Division in regard with this matter. The company is expecting to get the final approval of the transaction on the same day. According to a spokesperson of the company, the defendants continually denied the allegations in the lawsuit, but it was time-consuming, expensive and protracted.
As per the terms and conditions of the settlement, WAG or its insurance company would pay as much as $3.5 million worth of legal fees and expenses of the plaintiff. Walgreen Company (NYSE:WAG) would also look to adopt various compliance and corporate governance rules, which would also include ‘significant DEA-related matters’ reporting periodically.’ The reporting would be done in front of the audit committee of the board. The management of the company doesn’t want to carry these issues forward; hence, it’s looking forward to settling all the issues as soon as possible.
