I don’t feel like I need to remind you that Walgreens is kind of a big deal. We’re talking about one of the largest pharmacy chains in the U.S., with stores on practically every corner of America. 

(Source: Reddit) 

Which is why, other than its stock plunging -66.38% YTD, the company made headlines on Friday as the U.S. Department of Justice announced that Walgreens Boots Alliance (WBA) has agreed to cough up a nice $106.8 million. Why? Well to settle claims that it was fraudulently billing Medicare, Medicaid, and other healthcare programs for prescriptions that, uh, never actually made it into the hands of patients. 

(Source: Justice.gov) 

Interesting, more details please…

In short, the lawsuit says that between 2009 and 2020, Walgreens submitted claims for meds that were processed but left sitting on the shelf, unclaimed and unloved. Tens of millions of dollars worth. Let that sink in. 

The government’s not thrilled about it either, with Brian Boynton from the DOJ’s civil division making it clear: “We will hold accountable those who abuse these programs by knowingly billing for goods or services they did not provide.” Translation: Walgreens, you messed up, and we’re not letting it slide.

(Source: Reuters) 

Now, with that said Walgreens isn’t exactly running around saying, “Guilty as charged!” In fact, they haven’t admitted to any liability as of late. However, the company is claiming this whole debacle was due to a software error. Classic (Is that you, Crowdstrike?). Of course, it’s not a full on stolen show that Walgreens has conducted, because in a statement released by the company, they have refunded $66.3 million, which is definitely something. But still, $106.8 million is no small change, even for a company as massive as Walgreens.

(Source: Giphy) 

What’s even more interesting, is that this settlement is the result of not one, not two, but three whistleblower lawsuits filed in Florida, New Mexico, and Texas. And you know what that means? Whistleblowers get paid. Steven Turck, a former Walgreens pharmacy manager in Texas, is walking away with $14.92 million from the settlement. 

Meanwhile, Andrew Bustos, a former district pharmacy supervisor in New Mexico, is pocketing $1.62 million. Not bad for blowing the whistle (seriously, this is the new side hustle of 2024, meaning if you have some dirty deets on a company… well, then there you go -> retirement = funded). 

(Source: Silicon Republic) 

Now if you’re a Walgreens investor, you already know this settlement is just the latest in a string of bad news for the company. Like mentioned above, Walgreens’ stock has tanked 66.38% this year. Yes, 66%. And even though the stock saw a tiny 4.2% bump on Friday (Wall Street Logic 101 in the face of bad news) to close at $9.21, it’s clear the overall picture isn’t exactly inspiring confidence in investors.

Plus, if that wasn’t enough, Walgreens has also announced that it’s going to close a bunch of underperforming stores. Because what better way to show you’re struggling than by shutting down locations? The company’s trying to adapt to the digital age, but it’s a tough landscape out there for brick-and-mortar retailers. Just ask Blockbuster. (Oh wait… you can’t.)

(Source: Nasdaq) 

Now to their credit, Walgreens is at least trying to get its act together. They’ve reportedly made “significant” upgrades to their pharmacy management system in an effort to prevent this kind of billing disaster from happening again. 

But let’s be real—this isn’t just about a software glitch. The company’s now facing a long road of rebuilding trust with both the government and consumers. And in a world where healthcare competition is fiercer than ever, that’s not going to be easy - especially considering billing practices are under a microscope right now, and no one’s getting a free pass. 

(Source: Giphy) 

If Walgreens can get smacked with a $106.8 million fine for this, you better believe other chains are checking their own billing systems twice, maybe even three times. Because when it comes to healthcare costs, the government and consumers aren’t playing around.

So, what does this mean for Walgreens in the long run? Well, while they’ve taken steps to fix the problem and paid the fine, the damage might already be done. Investors are spooked, and the company’s stock is still in the toilet. Not to mention, trust is hard to win back once it’s shattered—especially in healthcare, where people’s literal well-being is on the line.

(Source: USA Today) 

The real question is though: Can Walgreens survive the storm and right the ship? Or is this the beginning of a long, slow decline for one of America’s most iconic pharmacy chains? (See, Big Lots for example). Of course, only time will tell, but one thing’s for sure—$106.8 million isn’t going to be the end of Walgreens’ problems. 

But, but, but…

With that said, who cares about Walgreens right now when there is a seismic 61% SHORT-INTEREST in Dark Pool data (aka the smart money OF the smart money) on our alert for today! 

(Source: Giphy) 

Meaning, today’s little known stock is primed for a massive SQUEEEEZE at any moment!

Keep in mind, we’ve already seen a massive 96% move from the stock last week… could we see triple the move this week? Click here for the details and find out…

(Source: Giphy) 

Stocks.News does not hold any positions in companies mentioned in the article.