According to an article in the Financial Post, Jean Coutu allegedly overcharged stores for franchisor services, such as advertising, branded plastic bags and flyers, over the past four years. The proceedings were filed on behalf of 284 individuals representing 306 franchises. The lawsuit claims the franchisees have been overpaying Jean Coutu in violation of Article 49 of the Code of Ethics for Pharmacists, which prohibits pharmacies from sharing fees and profits from drug sales with non-pharmacies.
The article quotes Bank of Montreal (BMO) capital markets analyst Peter Sklar, who is not convinced the lawsuit will succeed, but says it does expose stress within the company.
To read the full Financial Post article, click here.