WBA reaches agreement with SEC
Walgreens Boots Alliance on Friday announced that it had reached an agreement with the Securities and Exchange Commission to resolve an investigation into forward-looking financial goals made by former Walgreens executives made before the company merged with Boots.
The company noted that the settlement does not involve any current Walgreens Boots Alliance officers or executives, nor allege that anyone acted intentionally or recklessly. In agreeing to the settlement agreement, WBA said it neither admits nor denies the SEC’s allegations that Walgreens’ then-CEO and CFO acted negligently in comments made in June, October and December of 2013, as well as March 2014 earnings calls by failing to adequately disclose the increased risk to achieving certain of its previously stated fiscal 2016 financial goals. The company withdrew the goals in June 2014 following two warnings.
The company has consented to the SEC issuing an administrative order, and it said it would pay a $34.5 million fine that it said had been reserved for as the former CEO and CFO separately resolved the matter with the SEC. WBA noted that it cooperated fully with the SEC investigation and that it believes the agreement is in the best interest of the company.
The company noted that the settlement does not involve any current Walgreens Boots Alliance officers or executives, nor allege that anyone acted intentionally or recklessly. In agreeing to the settlement agreement, WBA said it neither admits nor denies the SEC’s allegations that Walgreens’ then-CEO and CFO acted negligently in comments made in June, October and December of 2013, as well as March 2014 earnings calls by failing to adequately disclose the increased risk to achieving certain of its previously stated fiscal 2016 financial goals. The company withdrew the goals in June 2014 following two warnings.
The company has consented to the SEC issuing an administrative order, and it said it would pay a $34.5 million fine that it said had been reserved for as the former CEO and CFO separately resolved the matter with the SEC. WBA noted that it cooperated fully with the SEC investigation and that it believes the agreement is in the best interest of the company.