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.

Go deeper

Pompeo tells Congress Hong Kong is no longer autonomous from China

Photo: Nicholas Kamm/POOL/AFP via Getty Images

Secretary of State Mike Pompeo said in a statement Wednesday that he has certified to Congress that Hong Kong is no longer autonomous from China and does not warrant special treatment under U.S. law.

The big picture: The Chinese Communist Party has unveiled a sweeping new security law that will criminalize sedition, foreign influence and secession in Hong Kong. The move and the subsequent reaction from the U.S. has put the once semi-autonomous city's status as one of Asia's largest financial hubs at risk.

Podcast: Trump vs. Twitter ... vs. Trump

Twitter came under fire on Tuesday for allowing President Trump to tweet conspiracy theories about Joe Scarborough and the 2001 death of one of his staffers, despite the objections of the staffer's family. The company came under further fire from Trump himself for fact-checking two of his tweets about mail-in voting.

Dan and the New York Times' Kara Swisher dig into Trump’s use of the platform and Twitter’s steps — and missteps — in handling it.

Go deeper: Trump has turned Big Tech's speech rules into a political football

17 mins ago - Technology

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 11:30 a.m. ET: 5,618,829 — Total deaths: 351,146 — Total recoveries — 2,311,404Map.
  2. U.S.: Total confirmed cases as of 11:30 a.m. ET: 1,681,793 — Total deaths: 98,933 — Total recoveries: 384,902 — Total tested: 14,907,041Map.
  3. Public health: Fauci says data is "really quite evident" against hydroxychloroquine — Nearly half of Americans say someone in their household has delayed medical care.
  4. Tech: Zipline drones deliver masks to hospitals; vaccines could be next
  5. Business: Boeing to lay off 6,770 more U.S. employees.
  6. 🏒Sports: NHL unveils 24-team playoff plan to return from hiatus.
  7. What should I do? When you can be around others after contracting the coronavirus — Traveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
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Updated 21 mins ago - Politics & Policy