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Case Status:    ONGOING    
On or around 10/20/2017 (Ongoing date of last review)

Filing Date: December 18, 2015

According to the law firm press release, Rite Aid is a retail drugstore chain that sells prescription drugs and a range of other merchandise referred to as "front-end products."

On October 27, 2015, Rite Aid and Walgreens jointly announced that they had entered into an Agreement and Plan of Merger pursuant to which Walgreens will purchase Rite Aid for $9.00 per share in cash. The Proposed Transaction is valued at $17.2 billion.

The complaint alleges that in connection with the Proposed Transaction, on November 23, 2015, defendants filed a materially false and misleading preliminary proxy statement on Schedule 14A (the "Proxy") with the SEC in violation of §§14(a) and 20(a) of the 1934 Act. The Proxy, which recommends that Rite Aid shareholders vote in favor the Proposed Transaction, fails to disclose material information regarding the negotiation and approval of the Proposed Transaction and deprives the Company's shareholders of their right to cast an informed vote on the deal. According to the complaint, the Proxy fails to disclose the following material information, which renders the statements in the Proxy materially false and/or misleading: (a) the terms of a certain alternate bidder's indications of interest; (b) the nature of the Board's financial advisor's conflict of interest; (c) management's financial forecast; (d) management's alternate forecast; (e) discussions regarding financial benefits to the Board and Rite Aid management; (f) discussions regarding management's equity rollovers; and (g) material metrics and assumptions underlying the financial advisor's valuation analysis. Without this material information, the Company's shareholders cannot make an informed decision on how to vote their shares or whether to seek appraisal.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Drugs)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: RAD
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: M.D. Pennsylvania
DOCKET #: 15-CV-02440
JUDGE: Hon. Yvette Kane
DATE FILED: 12/18/2015
CLASS PERIOD START: 10/27/2015
CLASS PERIOD END: 12/18/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kaufman, Coren & Ress, P.C.
    Two Commerce Square, Suite 3900 , Kaufman, Coren & Ress, P.C., PA 19103
    215-735-8700 ·
  2. Robbins Geller Rudman & Dowd LLP (Boca Raton)
    120 East Palmetto Park Road, Suite 500, Robbins Geller Rudman & Dowd LLP (Boca Raton), FL 33432
    561.750.3000 561.750.3364 ·
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