Shoppers Drug Mart is suing a pharmacist who previously operated its stores in Kitimat and Terrace, accusing him of misappropriating more than $1 million in funds. The lawsuit, filed in the Supreme Court of British Columbia, claims that Mulugeta Woldetsadik diverted large sums of money for personal uses that include luxury vacations and shopping sprees.

The lawsuit focuses on two Terrace stores and a third in nearby Kitimat鈥檚.

According to the court documents, Shoppers Drug Mart is seeking to recover $1,037,000 in 鈥淓quity Shortfall.鈥� This represents the funds that Woldetsadik allegedly withdrew or charged to company credit cards but did not use for the business. 

鈥淚nstead, the funds were used for luxury vacations, meals and shopping sprees in a foreign jurisdiction, and to pay down the mortgages and make improvements on his home,鈥� the notice of civil claim reads.

The company says that between July 2022 and December 2023, Woldetsadik made a series of improper transfers and withdrawals from the pharmacies鈥� accounts, totalling $654,000. Additionally, he is accused of making $580,000 in personal credit card charges.

Among the notable expenses listed in the lawsuit are $71,438 spent at The Address Downtown Dubai, $51,047 at Madison Avenue Couture, $42,938 through Expedia, $21,402 on Ethiopian Airlines, $11,139 at Gucci, and $10,558 at the Four Seasons Resort. The funds were also allegedly used to pay down mortgages and improve Woldetsadik鈥檚 personal residence in Courtenay, B.C.

Shoppers Drug Mart entered into an Associate Agreement with Woldetsadik and his company, Mulugeta Pharmacy Ltd,  in January 2023, allowing him to operate the three pharmacies. By late 2023, Woldetsadik ceased operations at those stores and shifted to managing a single Shoppers Drug Mart in Powell River. 

The lawsuit accuses Woldetsadik of breaching the Associate Agreement by failing to maintain the necessary equity in the businesses and diverting funds meant for store operations to personal luxury expenses. 

Shoppers Drug Mart is also requesting that the court freeze his assets and trace the funds, as well as obtain a certificate of pending litigation on his residence, which was allegedly paid down with the misused money.

Black Press Media could not locate Woldetsadik for comment. The allegations against him have not been proven in court.