America's largest pharmacy chain has been sued by the government for alleged discrimination against black workers.
Walgreen illegally sent black staff to low-performing stores and shops in black communities, the Equal Employment Opportunities Commission (EEOC) claims.
African-American employees - including pharmacists and managers - were also denied promotions, the EEOC claim adds.
However, Walgreen has denied the claims, saying there is "simply" no truth to the allegations.
The company added it was "saddened and disappointed" by the EEOC's action and that it was committed to "fairness, diversity and opportunity".
Complaints
The EEOC launched its case after carrying out an investigation into 12 complaints filed by current and former Walgreen staff across the country.
Most of the complaints in the class action suit came from workers and former staff in St Louis, Florida, Detroit and Kansas City.
The legal action launched by the EEOC comes after a group of Walgreens employees launched a private federal case against the company on similar charges in June 2005.
The EEOC added that it will ask the courts to consolidate the two lawsuits - both of which were filed in the US District Court for the Southern District of Illinois - as the 2005 lawsuit is still pending.
Walgreens says it is the largest US pharmacy chain by sales, with more than 5,638 stores in 48 states and Puerto Rico, and recorded sales of $47.4bn (£24.5bn) in the 2006 financial year.
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