Walgreens Hit With Shareholder Suit Over VillageMD Partnership

Walgreens Boots Alliance Inc. botched the expansion of its partnership with VillageMD, while falsely assuring investors it knew how to scale the clinic operator’s model, a shareholder alleged in a new lawsuit.

Walgreens concealed from investors that growth in its US health-care segment was slower than expected because it oversaturated markets with VillageMD clinics, the complaint, filed Tuesday in the US District Court for the Northern District of Illinois, said.

The oversaturation led “these newly created medical clinics to be understaffed, have less patients coming in to be treated, and culminating in a greater than expected impact on Company’s ...