INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Rite Aid Corporation (NYSE: RAD) Shareholders
NEWTOWN, PA, March 23, 2023– The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers and holders of Rite Aid Corporation (“Rite Aid” or the “Company”) (NYSE: RAD) common stock between April 26, 2018, and March 16, 2023, both dates inclusive (the “Class Period”).
Investors who purchased Rite Aid Corporation common stock may move the U.S. District Court for the Northern District of Ohio to appoint them as lead plaintiff, no later than May 19, 2023. Current holders of Rite Aid stock may pursue corporate governance reforms. Please contact Edelson Lechtzin LLP at 844-696-7492 to discuss your investment losses or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Rite Aid Corporation
Founded in 1962, Rite Aid is an American drugstore chain headquartered in Philadelphia, PA. Rite Aid operates over 2,400 retail pharmacy locations across 17 states. Through their pharmacy benefits manager, Elixir, they provide pharmacy benefits and services to millions nationwide.
The Securities Fraud Claims
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects, including: (i) Until at least June 2019, Rite Aid filled hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, including for potentially lethal opioids such as oxycodone and fentanyl; (ii) Rite Aid pharmacists filled such prescriptions despite clear “red flags” and intentionally deleted internal notes about suspicious prescribers written by concerned pharmacists; and (iii) by knowingly filling unlawful prescriptions for controlled substances, the Company violated the Controlled Substances Act and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the False Claims Act. As a result, Rite Aid was at risk of prosecution by federal authorities including the U.S. Department of Justice (“DOJ”).
On March 13, 2023, the DOJ announced it had filed a lawsuit against Rite Aid, intervening in a whistleblower lawsuit brought under the False Claims Act against Rite Aid and certain of its subsidiaries, alleging Rite Aid knowingly filled unlawful prescriptions for controlled substances. The DOJ also announced it was suing Rite Aid for violations of the Controlled Substances Act. On this news, Rite Aid’s stock fell $0.62 per share on March 14, 2023, or 18.9% on unusually heavy trading volume, to close at $2.66, damaging investors. Rite Aid stock continued to decline on March 15, 2023, when it fell as much as $0.235 per share, or 8.8%, before closing at $2.57, a 3.8% decline from the prior day.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.