RITE AID CORPORATION (NYSE: RAD) SHAREHOLDER CLASS ACTION ALERT: Bernstein Liebhard LLP Announces that a Securities Class Action Lawsuit Has Been Filed Against Rite Aid Corporation (NYSE: RAD)
Did you lose money on investments in Rite Aid? If so, please visit Rite Aid Corporation Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or email@example.com to discuss your rights.
NEW YORK, March 24, 2023 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of Rite Aid Corporation (“Rite Aid” or the “Company”) (NYSE: RAD) between April 26, 2018 and March 13, 2023, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Northern District of Ohio and alleges violations of the Securities Exchange Act of 1934.
Rite Aid is a national health care service and retail products company. Through Elixir, Rite Aid’s pharmacy benefits manager, the Company purports to provide pharmacy benefits and services to over two million members nationwide.
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose that: (1) until at least June 2019, Rite Aid filled at least 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; (2) Rite Aid pharmacists filled these prescriptions despite clear “red flags” that indicated that the prescriptions were unlawful; (3) Rite Aid ignored evidence that its stores were dispensing unlawful prescriptions, and intentionally deleted internal notes about suspicious prescribers written by concerned pharmacists; (4) Rite Aid violated the Controlled Substances Act (“CSA”) and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the False Claims Act; and (5) as a result, it was at risk of prosecution by federal authorities such as the United States Department of Justice (“DOJ”).
On Monday, March 13, 2023, after market hours, the DOJ announced in a press release that it had filed a lawsuit against Rite Aid, intervening in a whistleblower lawsuit brought under the False Claims Act (FCA) against Rite Aid and various subsidiaries. The whistleblower lawsuit alleged that Rite Aid knowingly filled unlawful prescriptions for controlled substances. The DOJ also announced that it was suing Rite Aid for violations of the CSA.
On this news, Rite Aid’s stock fell $0.62 per share, or 18.9%, to close at $2.66 on March 14, 2023.
If you wish to serve as lead plaintiff, you must move the Court no later than May 19, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired Rite Aid securities, and/or would like to discuss your legal rights and options please visit Rite Aid Corporation Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or firstname.lastname@example.org.
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