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Someone's not telling the truth about Walgreens' missed forecast

Written by George Anderson

Back in August when it was announced that Wade Miquelon was leaving Walgreens to pursue opportunities outside the company, the chain and its former CFO were effusive in their praise for one another, despite the separation. That kumbaya moment has apparently deteriorated. Mr. Miquelon is now suing his former employer after Walgreens CEO Greg Wasson and director Stefano Pessina allegedly made false and defamatory comments about him to investors following the split.

When Walgreens issued a press release to announce Mr. Miquelon's departure, Mr. Wasson said, "Wade's remarkable leadership, strategic vision and expertise played a critical role in helping Walgreens transition and transform from a 20th century American drugstore chain into a 21st century global health and wellbeing enterprise."

According to Mr. Miquelon's suit, a Wall Street Journal article from Aug. 19 put the blame on him for a major forecasting error. In the piece, Walgreens former CFO was said to have forecast $8.5 billion in earnings for the company's pharmacy unit at a board meeting in April. In July, according to the article, he cut that forecast by $1.1 billion. The discrepancy was blamed on errors, in particular those related to generic drug pricing, made by Mr. Miquelon and Walgreens pharmacy chief Kermit Crawford.

The Journal piece went on to report that unnamed directors of the company had called the April forecast "inadequate" and that finance and pharmacy were not "talking to each other."

A Sept. 30 Journal article concluded that "a bungled generics forecast" led to the departure of the two men.

Mr. Miquelon's suit claims that in remarks to investors and news reporting, he was defamed when it was suggested that he was "personally responsible" for errors in the forecast. The negative press following his departure has cost him work.

 

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