Walgreens Top Brass Sued Over Hidden Growth Issues, Stock Drops

Walgreens Boots Alliance Inc.’s top executives and directors misled investors about business prospects for the pharmacy giant, as well as its expansion into the health-care industry, according to a shareholder derivative complaint.

The officers and board downplayed growth issues, assured investors of a strong outlook for Walgreens, and encouraged share repurchases at inflated prices for more than three years until a series of disclosures prompted stock drops, said the complaint filed in the US District Court for the District of Delaware.

A 22% drop from $15.66 to $12.19 per share on June 27—coinciding with Walgreens announcing revenue shortfalls and plans ...