Walgreens Challenges Nearly $1B Arbitration Award Over Alleged Breach of COVID-19 Test Business Contract
Portfolio Pulse from Vandana Singh
Walgreens Boots Alliance Inc (WBA) is contesting a nearly $1 billion arbitration award to PWNHealth, alleging a breach of a COVID-19 test business contract. Walgreens argues the award is excessively high and exceeds the contract's damage limits. The dispute centers on Walgreens diverting COVID-19 tests from Everly's network to its operations. Additionally, Walgreens settled a lawsuit with Humana Inc (HUM) for $360 million over prescription drug reimbursement charges.
March 27, 2024 | 6:17 pm
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Walgreens is challenging a nearly $1 billion arbitration award to PWNHealth over a contract dispute, arguing it exceeds allowable damages. The company also settled a lawsuit with Humana for $360 million.
The legal challenge against the arbitration award and the recent settlement with Humana could negatively impact investor sentiment towards Walgreens, potentially leading to a short-term decrease in stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Humana Inc settled a lawsuit with Walgreens for $360 million over allegations of overcharged prescription drug reimbursements.
The settlement of the lawsuit with Walgreens for $360 million could be viewed positively by investors as it resolves a legal dispute and recovers funds for Humana, potentially leading to a short-term increase in stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80