INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Rite Aid Corporation (NYSE: RAD) Shareholders
NEWTOWN, PA, October 25, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Rite Aid Corporation (“Rite Aid” or the “Company”) (NYSE: RAD) common stock between April 14, 2022, and September 28, 2022, inclusive (the “Class Period”).
Investors who purchased Rite Aid common stock during the Class Period may move the U.S. District Court for the Eastern District of Pennsylvania to appoint them as lead plaintiff, no later than December 19, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the Class Action Complaint can be viewed HERE.
Background on the Rite Aid Securities Class Action
Rite Aid is an American drugstore chain based in Philadelphia, Pennsylvania. The Company operates through two segments, Retail Pharmacy and Pharmacy Services. Specifically, the Pharmacy Services segment provides pharmacy benefit management (“PBM”) through the Company’s Elixir subsidiary, including technology solutions, mail delivery services, specialty pharmacy, network, and rebate administration, claims adjudication, and pharmacy discount programs.
The Complaint alleges that, throughout the Class Period, Defendants made false and misleading statements (or material omissions) concerning Rite Aid’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (i) despite representations by Rite Aid to the contrary, the number of new members or “lives” that the Elixir PBM services business was adding during the selling season ending on January 1, 2023 was declining by a material amount; and (ii) Rite Aid was likely to recognize a significant charge for the impairment of goodwill related to Elixir due to a decrease in “lives” covered by Elixir’s PBM services business. As a result, the Company’s public statements were materially false and misleading throughout the Class Period.
On September 29, 2022, Rite Aid announced a $252.2 million charge for the impairment of goodwill related to its Elixir subsidiary. On this news, the price of Rite Aid’s shares plummeted $1.97 per share, or 28.02% in a single day, to close at $5.06 per share on September 29, 2022.
For more information, please contact:
About Edelson Lechtzin LLP
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.