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Walgreens Stock Tumbles on DOJ Lawsuit Over 'Millions' of Alleged Illegal Prescriptions

1. Walgreens faced a DOJ lawsuit over unlawful prescription dispensing. 2. The suit claims Walgreens dispensed millions of prescriptions without medical reasoning. 3. Walgreens accused DOJ of enforcing arbitrary rules against pharmacists. 4. Company's shares dropped over 12% following the lawsuit announcement. 5. Previous whistleblower complaints contributed to the ongoing investigation.

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FAQ

Why Very Bearish?

The DOJ's allegations directly threaten Walgreens' business practices, harming investor confidence. Past legal issues typically result in significant stock declines, as seen with other pharma chains.

How important is it?

The DOJ lawsuit is a significant legal challenge that can drastically affect Walgreens' operations and finances, making it highly relevant for investors.

Why Short Term?

Immediate investor reaction to the lawsuit leads to rapid stock price fluctuations. Similar past lawsuits have historically caused quick declines in stock value.

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