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| 2003
News and Press Releases |
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SETTLEMENT "OR" DISMISSAL:
Some Rite Aid Investors To Collect From Newly Approved $ 126 Million Settlement
By: Tom Dochat
The Patriot-News. June 4, 2003
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EXCERPT: A federal judge in Philadelphia has approved a settlement of more than $126 million for investors who bought Rite Aid Corp. stock during a 2[1/2]-year period in the late 1990s. Combined with a previous settlement with Rite Aid, shareholders will have access to a package of more than $ 334 million to partially recover their losses. Sherrie R. Savett, an attorney with Berger & Montague in Philadelphia, one of the two law firms handling the class-action case, said any distribution to shareholders probably won't occur until early next year after potential claims have been analyzed. Notices of the recent settlement were mailed to more than 300,000 individuals and institutional investors. The latest settlement involves a $ 125 million contribution from KPMG LLP, Rite Aid's former auditor, and up to $ 1.45 million from Martin L. Grass, former chairman and chief executive officer. Timothy J. Noonan, Rite Aid's former president and chief operating officer, contributed 53,279 shares of Rite Aid stock that have since been sold for more than $ 157,000. Savett said the total settlement, including about $ 200 million from Rite Aid that has been accruing interest, represents the second-largest securities settlement ever in the 3rd U.S. Circuit Court territory. She added that KPMG's contribution is the second-largest recovery ever from an accounting firm in a securities fraud case. The settlement applies to investors who bought and held Rite Aid stock from May 2, 1997, through Nov. 10, 1999. The shareholders contended in lawsuits that they were misled about Rite Aid's financial condition by the company's former management.
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