BUZZ-Walgreens falls after being accused of filling unlawful opioid prescriptions

Updates

Shares of pharmacy operator Walgreens Boot Alliance WBA.O fall 12.7% to $10.94

Late on Friday, U.S. Justice Department accused WBA of contributing to the opioid epidemic by filling millions of unlawful prescriptions for addictive painkillers and other drugs

The DoJ lawsuit was announced after WBA filed a lawsuit on Thursday challenging U.S. Drug Enforcement Administration policies seeking to ensure that stricter standards at pharmacies for dispensing controlled substances

"We see this as largely headline risk for the time being, with an opportunity for the courts to set out clearer pathways going forward regarding pharmacist/pharmacy obligations regarding filling prescriptions" - brokerage Evercore ISI

*Brokerage Morningstar says "The timing of the news is unfavorable, as the stock has enjoyed a rare period of gains during the week of Jan. 13 and was up over 35% since reporting earnings on Jan. 8"

WBA fell 64.3% in 2024

(Reporting by Puyaan Singh and Sneha S K)

((Puyaan.Singh@thomsonreuters.com;))