Walmart Inc.

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(i) the company knowingly filled prescriptions that were issued by so-called “pill-mill” prescribers;
(ii) the company filled thousands of prescriptions that showed obvious red flags, including highly-dangerous cocktails of drugs;
(iii) the company’s managers made it difficult for Walmart pharmacists to comply with their legal obligations by pressuring them to fulfill as many orders as possible;
(iv) hence, the company’s pharmacy revenues were inflated because the Company filled thousands of invalid prescriptions in violation of the Controlled Substance Act dispensing requirements;
(v) the aforementioned conduct would subject the company to regulatory scrutiny; and
(vi) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.