Judge rules Walgreens (WBA) must pay $988 million arbitration award

Walgreens Boots Alliance, Inc. (NASDAQ: WBA) has been ordered by a Delaware federal court to uphold an arbitration award of $988 million. The decision, confirmed on Monday, stems from a dispute with Everly Health Solutions, previously known as PWNHealth LLC. According to InvestingPro data, the company currently shows signs of being undervalued based on its Fair Value analysis.

The conflict began when Everly/PWN initiated arbitration on June 10, 2022, accusing Walgreens of breaching an exclusivity agreement by internalizing services related to Covid testing oversight, previously managed by Everly/PWN. Additional allegations included fraudulent inducement and misuse of PWN's trademark.

Despite the arbitrator's decision on March 19, 2024, awarding Everly/PWN the substantial sum, which includes pre-award interest, Walgreens contested the ruling. The company highlighted a contractual damage cap within the agreement, limiting liability to $79 million.

Walgreens, disagreeing with the federal court's recent ruling, is considering an appeal to the United States Court of Appeals for the Third Circuit. The company cautions that the appeals process could extend over two years, with no certainty regarding the outcome.

You May Also Be Interested In

• Active options: NVDA TSLA AMZN AAPL MSTR SPCX MU PLTR MSFT WEN SOFI
• 9 Simmons Hanly Conroy Attorneys Named 2026 Lawdragon 500 Leading Plaintiff Consumer Lawyers
• Chemours reaches $450M settlement over PFAS pollution at four sites