Markets
Walgreens freezer screens
Walgreens freezer screens (Shutterstock)

Walgreens gets sued for using — and not using — the very same fridge door panels

When will this issue go on ice?

Cooler heads are not prevailing in the ongoing saga over Walgreens’ refrigerator misadventures.

On the one hand, the company’s being sued for trying to get out of a deal to install more “smart panels” on refrigerators in its stores. On the other hand, it’s being sued for using those very panels.

Alpha Modus Holdings said its subsidiary has filed a lawsuit against Walgreens Boots Alliance for the use of these digital screens, alleging patent infringement.

“Walgreens’s deployment of Cooler Screens digital smart screens in its stores mirrors the innovations protected under Alpha Modus’s patents, necessitating this legal action,” according to the press release, in which CEO William Alessi opines that total damages across “scores” of so-called offenders is over $500 million and “could easily run into the billions.”

Here’s the thing: Walgreens seemingly hated, hated those fridges.

Walgreens and Cooler Screens are already in a legal battle related to the pharmacy chain’s use of the startup’s panels for fridges, which can be used to sell ad space. Cooler Screens says Walgreens breached its contract by attempting to exit a deal to install more and more panels in its stores; Walgreens says these doors were glitch-ridden and countersued for damages.

Per Bloomberg, the CEO of the startup — which, to add a layer of incestuous intrigue, was cofounded by former Walgreens CEO Greg Wasson — cut the feeds to certain Walgreens stores, causing them to go blank and appear to be out of order.

Cooler Screens’ understanding is that Wasson, through Wasson Enterprises, funded the startup of Cooler Screens and helped deploy Cooler Screens technology throughout Walgreens. These ongoing legal challenges between Walgreens and Cooler Screens further reinforce the strategic importance of Alpha Modus’ claims and the value of its intellectual property.

Walgreens recently suspended a quarterly dividend it’s paid out since the depths of the Great Depression, citing a need to preserve cash to refinance debt and deal with litigation. While the latter point seemed to be more a nod to the DOJ’s lawsuit, perhaps it will also take a fair amount of time and money to put the fridge panel disputes on ice.

More Markets

See all Markets
markets

SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

Latest Stories

Sherwood Media, LLC and Chartr Limited produce fresh and unique perspectives on topical financial news and are fully owned subsidiaries of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Money, LLC, Robinhood U.K. Ltd, Robinhood Derivatives, LLC, Robinhood Gold, LLC, Robinhood Asset Management, LLC, Robinhood Credit, Inc., Robinhood Ventures DE, LLC and, where applicable, its managed investment vehicles.