Walgreens Boots Alliance Inc (NASDAQ: WBA) is in hot water as it grapples with a proposed class action lawsuit in Florida federal court alleging that the pharmacy retailer mislabeled eyedrops designed to treat pink eye (conjunctivitis), misleading consumers into believing the product was safe and effective.
The legal action comes in the wake of warnings from the FDA to Walgreens and several other companies regarding the sale and marketing of eye care products the agency deems risky.
These products have not received FDA approval.
The FDA's letter to Walgreens specifically called out its branded Pink Eye Drops, Allergy Eye Drops, and Stye Eye Drops as products the company was illegally marketing as unapproved new drugs.
Additionally, the FDA expressed concerns about silver sulfate, a preservative with potential health risks, in these products, Reuters reported.
It also raised issues with the manufacturing facility's failure to comply with the FDA's safety regulations.
Walgreens also stated that customers who had purchased these products could return them for a full refund.
The FDA has demanded that the implicated companies respond within 15 days with a plan to rectify the violations.
Price Action: WBA shares are down 0.02% at $21.45 on the last check Friday.