(AP) — Walgreens and two former top executives are settling charges that they misled investors about the profit potential of its pending $16 billion merger with the European retail chain Alliance Boots.
In an agreement with the Securities and Exchange Commission, Walgreens Boots Alliance Inc. agreed to pay a $34.5 million penalty.READ MORE: Chicago Weather: Threat For Damaging Thunderstorms And Low Chance Of Tornadoes
Former CEO Gregory Wasson and Wade Miquelon, former chief financial officer, will each pay $160,000, without acknowledging wrongdoing.
According to the settlement, Deerfield-based Walgreens in 2012 projected a combined, adjusted profit of $9 billion to $9.5 billion for 2016.READ MORE: 75-Year-Old Man Dead, Woman Injured In Brainerd Apartment Fire
Though internal forecasts later revealed significant risks of not hitting that goal, the executives stuck the original forecasts.
Finally, in August 2014, the company issued a 2016 forecast that was 20 percent lower.
Shares tumbled 14 percent in one day.MORE NEWS: WATCH: Girl Challenges Pittsburgh Police Officer And Former Pitt Football Player To Race
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