A federal judge in Illinois dismissed Walgreen’s breach-of-contract claim against its founder’s great-grandson’s medical equipment company which has a similar name, concluding the parties’ agreement didn’t prohibit the defendant from opening a company that features the word “Walgreens” and sells similar merchandise.
On Thursday, U.S. District Judge Virginia M. Kendall of the Northern District of Illinois granted a motion to dismiss filed by Charles R. Walgreen, who runs a medical equipment company named Walgreen Health Solutions. A breach-of-contract claim brought by the pharmacy chain Walgreens argued the defendant, a family member of its founder, violated the parties’ 2013 agreement by founding WHS, claiming the agreement required him to take reasonable steps to avoid confusion between his companies and the retail giant.