NEW YORK (TheStreet) -- Walgreen (WAG) has filed a lawsuit against Rite Aid (RAD), CVS Caremark (CVS) and Shopko Stores to claim that the competitors are using Walgreen's new patent on technology for refilling prescriptions with mobile-phone scanners.
The largest U.S. drugstore chain was awarded a patent last month for a system that allows for "express refill" of prescriptions, according to Bloomberg. The company argued in complaints filed in federal court in Wilmington, Delaware on Jan. 31 that it has exclusive use of the invention and that it "owns, offers and operates" mobile applications that run on iPhones, Android phones and BlackBerrys. The Deerfield, Illinois-based company claims in the filing that Rite Aid, CVS and Shopko are using the system without a license. Walgreen is seeking unspecified damages and for the competitors to cease their use of the system.
Walgreen recorded $72 billion in sales in the last fiscal year.
Walgreen was down 3% to $55.63 on Monday afternoon, while Rite Aid was down 3.25% to $5.37 and CVS was down 2.69% to $65.90.
TheStreet Ratings team rates WALGREEN CO as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate WALGREEN CO (WAG) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."