Sep 28, 2018

Walgreens settles profit shortfall case

A sign marking the entrance to a Walgreens store in San Francisco. Photo: Robert Alexander/Getty Images

Walgreens Boots Alliance, former CEO Gregory Wasson and former CFO Wade Miquelon each settled with the Securities and Exchange Commission, which charged them with making misleading profit forecasts in 2013 and 2014.

The bottom line: This is another example of why financial projections should not be viewed as gospel.

The details: Walgreens will pay $34.5 million to settle the case without acknowledging denial or wrongdoing, while Wasson and Miquelon each will pay a $160,000 penalty. The executives surprised investors by dropping a core measure of profit after the prices of generic drugs unexpectedly increased, according to the SEC.

Perspective:

  • Wasson made $82.8 million in his final year at Walgreens. That means his $160,000 penalty was just 0.2% of his haul from that final year. That's equivalent to a $114 fine for someone who makes $60,000 a year .
  • The $34.5 million fine Walgreens has to pay? It's 2.6% of just this year's second-quarter net profit.

Go deeper: Read the full settlement.

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Bernie's juggernaut

Sen. Bernie Sanders speaks in San Antonio last night with his wife, Jane. Photo: Eric Gay/AP

Sen. Bernie Sanders won so big in the Nevada caucuses that Democrats are hard-pressed to sketch a way he's not their nominee.

Driving the news: With 60% of precincts counted (slow, but better than Iowa!), Sanders is running away with 46% of delegates — crushing Joe Biden's 20%, Pete Buttigieg's 15%, Sen. Elizabeth Warren's 10% and Sen. Amy Klobuchar's 5%.

Go deeperArrowUpdated 2 hours ago - Politics & Policy

Buttigieg campaign claims Nevada caucuses were "plagued with errors"

Photo: Win McNamee/Getty Images

Pete Buttigieg's campaign wrote a letter on Sunday asking the Nevada State Democratic Party to release early vote and in-person vote totals by precinct and address certain caucus errors identified by campaigns, The Nevada Independent reports.

The big picture: The campaign alleges that the process of integrating early votes on caucus day was “plagued with errors and inconsistencies,” and says it received more than 200 incident reports from precincts around the state.

Go deeperArrowUpdated 2 hours ago - Politics & Policy

Coronavirus threat grows, threatening some drug supplies

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

As the novel coronavirus continues spreading globally and China grapples with a limited production capability, there's a growing risk to about 150 prescription drugs in the U.S., sources tell Axios.

The big picture: The coronavirus has spread to more countries, with both South Korea and Italy stepping up emergency measures amid rising case numbers on Sunday. COVID-19 has killed at least 2,467 people and infected almost 79,000 others, mostly in mainland China.

Go deeperArrowUpdated 3 hours ago - Health