SAN DIEGO, CA / ACCESSWIRE / November 19, 2022 / Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Rite Aid Corporation (NYSE:RAD) securities from April 14, 2022 to September 28, 2022, inclusive (the "Class Period") have until December 19, 2022 to seek appointment as lead plaintiff in the Rite Aid class action lawsuit. Captioned Page v. Rite Aid Corporation, No. 22-cv-04201 (E.D. Pa.), the Rite Aid class action lawsuit charges Rite Aid and certain of its top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Rite Aid class action lawsuit, please provide your information here:
CASE ALLEGATIONS: Rite Aid operates through two segments, Retail Pharmacy and Pharmacy Services. Rite Aid's Pharmacy Services segment provides an integrated suite of pharmacy benefit management ("PBM") offerings through, among other things, Rite Aid's Elixir subsidiary, including technology solutions, mail delivery services, specialty pharmacy, network and rebate administration, claims adjudication, and pharmacy discount programs.
The Rite Aid class action lawsuit alleges that defendants throughout the Class Period failed to disclose that: (i) despite representations to the contrary, the number of new members (i.e., "lives") that the Elixir PBM services business was adding during the selling season ending on January 1, 2023 was in material decline; 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.
On September 29, 2022, Rite Aid announced a $252.2 million charge for the impairment of goodwill related to Rite Aid's Elixir subsidiary. On an earnings call held later in the day, Rite Aid's CFO, defendant Matt Schroeder, explained that the large impairment charge was related to Elixir based on "an update to our estimate of lives for 2023 based on the latest selling season," and that Rite Aid "expected[ed] lives to go down." On this news, Rite Aid's stock price fell by more than 28.02%, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Rite Aid securities during the Class Period to seek appointment as lead plaintiff in the Ride Aid class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Rite Aid class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Rite Aid class action lawsuit. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Rite Aid class action lawsuit.
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SOURCE: Robbins Geller Rudman & Dowd LLP