Caravan Magazine

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Walgreens Faces $200 Million Lawsuit from Former CEO Over Broken Contract

Greg Wasson, the former CEO of Walgreens, has filed a $200 million lawsuit against the company, accusing it of breaching a contract related to a technology project he helped establish. Wasson, who worked at the pharmacy giant for more than 30 years and served as CEO from 2009 to 2014, is now suing Walgreens over the cancellation of a deal to install high-tech digital screens on store refrigerator doors.

The technology, developed by Cooler Screens—a startup Wasson co-founded in 2017—was designed to replace traditional glass doors with “Smart Doors” that would display product information and advertisements while consumers shopped for cold beverages. The project, initially approved by Walgreens under Wasson’s leadership, was set to roll out in 2,500 stores across the U.S.

However, after Roz Brewer took over as Walgreens CEO in 2021, she decided to halt the deployment of the Smart Doors, a move that, according to Wasson’s legal team, cost Cooler Screens over $200 million. The lawsuit, filed in state court in Chicago, claims that Brewer’s decision was based on personal aesthetic preferences and that Walgreens made up safety concerns to justify terminating the contract.

According to the complaint, after visiting stores where the Smart Doors had been installed, Brewer reportedly described the screens as looking like “Vegas,” in a derogatory reference to their appearance. Wasson’s legal team argues that Walgreens invented reasons to cancel the agreement, including falsely citing safety defects that didn’t exist.

Walgreens has vehemently denied the claims, calling them “baseless and unfounded.” In a statement, the company said, “We are disappointed that Cooler Screens is falsely claiming that anything other than their failure to perform was the basis for the termination of our contractual relationship.”

The dispute stems from a partnership between Walgreens and Cooler Screens that began in 2018 with a pilot project. The technology was well-received by some, but consumer feedback on the screens has been mixed. Cooler Screens has pointed to third-party consumer surveys taken earlier this year, showing that 79% of respondents felt that the in-store digital ads enhanced their shopping experience, while only 6% found them negative.

Despite the controversy, Cooler Screens claims to have spent significant resources on the project, including $45 million to manufacture and install the Smart Doors in 700 Walgreens stores, $88 million for doors yet to be installed, and more than $100 million on third-party vendors.

Wasson’s legal battle with Walgreens marks the latest chapter in his long tenure at the company. After announcing his retirement from Walgreens in 2014, following a major management restructuring during the company’s merger with European retailer Alliance Boots GmbH, Wasson has remained active in the business world, now pursuing legal action over this broken contract.

The outcome of the lawsuit remains uncertain, but it highlights the growing tensions between traditional retail companies and the tech innovations seeking to reshape the consumer shopping experience.

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