On March 6, 2025, Walgreens announced that it agreed to be acquired by private equity firm, Sycamore. The proposed transaction, which involves over 450 California Walgreens stores. Howevever a settlement was reached under Assembly Bill 853 (AB 853), which requires notice and review by the Attorney General of transactions involving retail pharmacies and grocery stores in order to assess impact on access and labor. AB 853 was authored by former Assemblymember Brian Maienschein (D-San Diego) and went into effect on October 8, 2023. The settlement is subject to court approval.

Walgreens is the last nationwide and statewide independent pharmacy chain – that is, a chain not owned by one of the Big Three Pharmacy Benefit Managers (PBMs), which are CVS Caremark, Optum Rx, and Express Scripts. The proposed transaction between Walgreens and Sycamore includes, but is not limited to, the following Walgreens stores in California: six in Bakersfield, 11 in Fresno, five in Huntington Beach, 13 in Los Angeles, eight in Modesto, five in Riverside, seven in Sacramento, seven in San Diego, 26 in San Francisco, 10 in San Jose, and seven in Stockton.

The California Attorney General announced a settlement with Walgreens Co. and its succeeding owner, Sycamore Partners Management, L.P. (Sycamore), that would operate as an injunction and protect competition, patients, and pharmacy-related workers.

Under the settlement, Walgreens and Sycamore agree to the following conditions for the next seven years:

– – Use best efforts to maintain all California Walgreens stores remaining as of the date of the agreement, as well as all required licenses.
– – Provide 90-day notice of sale or closure of any remaining Walgreens stores.
– – Prohibition from reselling any of the Walgreens stores in California to any of the Big Three PBMs.
– – Prohibition from using any dividend recapitalization or other distribution of profits where such a dividend recapitalization or other distribution of profits would reasonably be likely to materially impair the operations of Walgreens.
– – Use best efforts to continue participation in Medi-Cal and Medicare.
– – Use best efforts to provide financial assistance to patients.
– – Ensure best efforts regarding compliance with state staffing levels.
– – Maintain a hiring list for all employees from stores that close going forward for preferential hiring at other Walgreens stores.
– – Use commercially reasonable efforts to pay retirement contributions if collective bargaining agreements require such payments.
– – Use commercially reasonable efforts to abstain from contesting unemployment for individuals who are laid off as a result of the sale or closure of Walgreens stores if no nearby Walgreens store offers employment.
– – Use commercially reasonable efforts to bargain with any unions in good faith.
– – Comply with nondiscrimination rules in the provision of healthcare services.

This settlement is the second reached by the California Attorney General under AB 853. The first settlement was with Rite Aid and was announced on August 19, 2024. In addition, on April 14, 2025, the California Attorney General joined a bipartisan coalition of 39 attorneys general in urging the leaders of the U.S. House of Representatives and U.S. Senate to enact a law that prohibits PBMs, their parent companies, or affiliates from owning or operating pharmacies.

Created in the late 1960s to process claims for drug companies, PBMs were supposed to help consumers access low-cost pharmaceutical care through negotiated volume-pricing discounts, generic substitution, manufacturer rebates, and other tools. However, PBMs have overtaken the market and now wield outsized power to reap massive profits at the expense of consumers and local community pharmacies.

A Burbank man has pleaded guilty to evading the payment of more than $11.2 million in federal taxes by using a shill to illegally collect Medicare reimbursement payments made to his blood-testing company, and to fraudulently obtaining nearly $100,000 in taxpayer-funded COVID-19 business relief, the Justice Department announced today.

Armen Muradyan, 60, pleaded guilty to one count of conspiracy to commit health care fraud, one count of wire fraud, and one count of tax evasion.

According to his plea agreement, Muradyan owned and operated a Burbank-based blood testing laboratory called Genex Laboratories Inc. Medicare and bank records show that Medicare paid millions of dollars in reimbursements to Genex for blood testing. The reimbursements were wired to bank accounts in the name of an individual identified in court documents as “L.S.” – Muradyan’s long-time friend to whom Muradyan had offered to pay $2,000 per month to pretend to be Genex’s owner.

Muradyan told L.S. that he needed him to submit Medicare enrollment papers to Medicare on Genex’s behalf because Medicare had banned Muradyan from submitting claims.

L.S. and Muradyan opened bank accounts for Genex in L.S.’s name, but which Muradyan controlled. L.S. neither owned nor operated Genex and visited the company’s Burbank office to collect his $2,000 monthly payment and to sometimes sign documents at Muradyan’s direction. Muradyan used the proceeds from the health care fraud conspiracy to pay the mortgage on a property he owned.

For the tax years of 2015 through 2020, Muradyan instructed L.S. to report Genex’s financial activity on L.S.’s personal income tax returns using documents that L.S. provided to his own tax preparer. The documents purportedly showed that Genex had minimal net profit or was operating at a loss, meaning the company had little or no income tax liability.

For the same period, Muradyan submitted income tax returns that reported none of Genex’s financial activity as his own and that he averaged an income of $40,000 per year. In fact, Muradyan personally received and used millions of dollars in Medicare reimbursements to support his own expensive lifestyle. Muradyan also did not file tax returns for the years 2021 through 2023.

In total, Muradyan’s unreported federal taxable income was approximately $23,915,762, resulting in a total federal income tax due and owing by him of approximately $11,236,357.

In July 2020, Muradyan wired a false and fraudulent application for an Economic Injury Disaster Loan (EIDL) that was funded by federal taxpayers. On the application, Muradyan falsely stated that GenMed employed multiple people and generated $800,000 in income for the year 2019. In fact, Muradyan knew GenMed employed no one and generated zero income for that year. The U.S. Small Business Administration (SBA) wired $99,900 to a bank account Muradyan controlled. He then used the money for personal expenses not permitted under the terms of the EIDL. Muradyan admitted he acted with the intent to deceive and cheat the SBA.

United States District Judge John A. Kronstadt scheduled a December 11 sentencing hearing, at which time Muradyan will face a statutory maximum sentence of 20 years in federal prison for the wire fraud count, up to 10 years in federal prison for the health care fraud conspiracy count, and up to five years in federal prison for the tax evasion count. Muradyan remains free on $2.6 million bond.

IRS Criminal Investigation, the FBI, and the United States Department of Health and Human Services Office of Inspector General investigated this matter.

Assistant United States Attorney Mark Aveis of the Major Frauds Section and Trial Attorney Mahana K. Weidler of the Department of Justice’s Tax Division are prosecuting this case.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Former Tesla HR execs Linda Peloquin, Adam Chow, Tiara Paulino, Sharnique Martin, Gregory Vass and Ozell Murray just filed a lawsuit against Tesla Inc., in the United States District Court for the Northern District of California Case 3:25-cv-06690-AMO. The lawsuit concerns the automaker’s Fremont, California, facility that has been at the center of several previous discrimination lawsuits.

These former Tesla HR professionals alleged that they were either fired or effectively forced to resign after attempting to surface other employees’ race discrimination and retaliation complaints at the company’s Fremont, California, plant.  

According to the Peloquin complaint, one of Tesla’s HR managers, Nicole Burgers, was a “common denominator” in the various claims made by the plaintiffs. They alleged that the manager, the overall HR manager for the entire Fremont facility, “had an irrational fixation on fostering the delusion that the environment and culture at Tesla is one of tolerance and innovation, rather than racism and retaliation.”

Allegations continue to say that “Much of Tesla’s workplace toxicity stems from its rapid sales growth and manufacturing demand, and the breakneck pace at which it hired employees to work in its plants and overall operation. Since its introduction in 2020, Tesla’s “Model Y,” for instance, has become the Company’s top-selling vehicle line – and, by most estimates, one of the top-selling electric vehicles in the world. Thus, there was, and remains, constant pressure to keep the Model Y’s sales trajectory high.”

“Yet, as a consequence of this desire to produce vehicles at such a rapid pace, the Company has failed to cultivate a healthy working environment at the Fremont facility, and instead fostered one that is beset with racism, sexism, cronyism, and outright physical violence.”

Plaintiffs claim “even employees that had been terminated for instances of workplace violence were loopholed back in via temp agencies. That meant, then, that oftentimes the employee who had been previously victimized had to actually resume working with their attacker and tormentor.”

“In fact, that Senior Security Manager himself was attacked and suffered a serious injury when he attempted to stop a loopholed employee – one who had been returned to work after being terminated for cause – after that employee came back aboard and attacked another worker.”

At some point plaintiffs allege that Tesla “turned its ire on the HR professionals that had merely investigated and substantiated the bases of the complaints. So, oddly, in most instances it was the HR official that wound up being penalized and pushed out for substantiating the alleged wrongdoing rather than the wrongdoer themselves. Consequently, a dizzying number of HR professionals – the Plaintiffs here: Peloquin, Chow, Paulino, Martin, and Vass, among them – have either been outright fired for substantiating complaints of discrimination and retaliation, or resigned because they saw a termination coming and did not want that type of disciplinary stain on their job history.

Details of the complaint allege “A common denominator in many of these terminations is a HR Manager named Nicole Burgers. By all accounts, Burgers has had an irrational fixation on fostering the delusion that the environment and culture at Tesla is one of tolerance and innovation, rather than racism and retaliation. By all accounts, given that Burgers was the overall HR manager for the entire Fremont facility, she believed that she would be held accountable for further instances of racism and misconduct at the Fremont location – particularly in light of the pending State, Federal, and private litigation against the Company. Thus, rather than undertake to change the culture and environment that fostered those types of instances of racism, Burgers instead undertook to weed out the HR professionals beneath her that merely investigated and substantiated the occurrence of that type of depravity.”

Page 24 of the 159 page complaint continues to provide details by writing “Karen Draper was one of the first dominos to fall in what became a long line of retaliatory terminations by Burgers and her Texas-based counterparts – Allie Arebalo, Bert Somsin, Jenifer Romero, and Leah Allen – or, instances where other HR professionals simply resigned under protest because they knew Burgers had begun to target them.