Walgreens, Warburg Beat Investor Class Action Challenging Merger

Drugstore chain Walgreens Boots Alliance Inc and Warburg Pincus LLC escaped a lawsuit from a proposed class of investors on Wednesday after a Delaware chancellor ruled the suit failed to state a claim.

Faiz Khan and Ralph Finger failed to sufficiently allege Walgreens, Warburg, and its affiliated entities breached an implied covenant, illegally interfered, or unjustly enriched themselves during a 2022 merger, Vice Chancellor Lori W. Will said in a memorandum opinion. Will granted the companies’ motion to dismiss the proposed class action with prejudice from the Delaware Chancery Court.

The plaintiff’s complaint “falls short” of the court’s “reasonable ...