In a significant legal move, Shoppers Drug Mart has filed a lawsuit against Mulugeta Woldetsadik, the owner of four pharmacies, claiming he improperly spent over $1 million of company funds on luxury items and extravagant trips.
The lawsuit, filed in B.C. Supreme Court, alleges Woldetsadik accessed the money through unauthorized withdrawals, credit card charges, and bank transfers, using it for overseas vacations, high-end hotels, and even home improvements. Among the luxury purchases, the suit details nearly $11,000 spent on Gucci products.
Woldetsadik, who has operated two Shoppers stores in Terrace and one in Kitimat, as well as another in Powell River, allegedly took out a total of $654,000 from the stores’ accounts between July 2022 and December 2023. He also charged an additional $580,000 on personal credit cards, including over $71,000 at a hotel in Dubai and significant amounts on travel and shopping.
According to the lawsuit, Woldetsadik failed to maintain the required minimum balance in the business accounts, leading to an equity shortfall. Shoppers Drug Mart claims this breach has caused the chain considerable financial damage.
The company is seeking a court order for Woldetsadik to repay the full amount, plus damages, and is also requesting a certificate of pending litigation against his property in Courtenay.
As of now, messages left with both Shoppers and Woldetsadik have gone unanswered, and none of the allegations have been proven in court.
