Rite Aid Class Action Lawsuit (RAD Lawsuit)
What Is The Rite Aid Lawsuit About?
The Rite Aid Class Action Lawsuit (NYSE:RAD) (Rite Aid Class Action Lawsuit) was filed when after the market closed on September 29, 2022, Rite Aid announced a $252.2 million charge for the impairment of goodwill related to the Company’s Elixir subsidiary.
Is There A Rite Aid Class Action Lawsuit?
RAD:NYSE Class Action Lawsuit (Rite Aid Corporation) was filed on October 19, 2022 on behalf of shareholders. The lawsuit was filed because on September 29, 2022, Rite Aid announced a $252.2 million charge for the impairment of goodwill related to the Company’s Elixir subsidiary.
On an earnings call held later in the day, Rite Aid’s Chief Financial Officer, 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 $1.97 per share, or 28.02%, to close at $5.06 per share on September 29, 2022.
Is There A Deadline For The RAD Lawsuit?
How Much Did Shareholders Lose In RAD Stock?
Shareholders who held RAD securities saw stock price fell $1.97 per share, or 28.02%, to close at $5.06 per share on September 29, 2022.
What Is The Rite Aid Lawsuit Complaint?
Levi & Korsinsky, LLP announces that a RAD class action lawsuit (Rite Aid Class Action Lawsuit) has been filed on behalf of investors who purchased Rite Aid Class Action Lawsuit (RAD) securities between April 14, 2022 – September 28, 2022, inclusive. For more on the RAD Lawsuit please contact us today.
According to the Rite Aid lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:
(i) in the past few months, Elixir had already “sold 35,000 new members” (as against a total of 55,000 new members in the prior year),
(ii) Elixir was a finalist for 150,000 additional new members, and “results have
shown that once we get to finalist, we’re winning deals 35% of the time,” and
(iii) Elixir had “a current pipeline of nearly 1 million members and growing.”
If you suffered a loss in RAD, you have until December 19, 2022 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Why Levi & Korsinsky, LLP Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.
What Is The Lead Plaintiff Process?
THE LEAD PLAINTIFF PROCESS: According to the Private Securities Reform Act of 1995, any investor who bought or acquired RAD securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The RAD class-action lawsuit is directed by the lead plaintiff. To litigate the Rite Aid Class Action Lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the RAD Class Action Lawsuit.
What Does RAD Do?
Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. The company operates through two segments, Retail Pharmacy and Pharmacy Services.
The Retail Pharmacy segment sells prescription drugs and provides various other pharmacy services and an assortment of products comprising over-the-counter medications, health and beauty aids, personal care products, seasonal merchandise, cosmetics, household items, food and beverages, greeting cards, seasonal and general merchandise, pet care, and a variety of other everyday and convenience products, as well as brand and generic prescription drugs; and a private brand product line.
It also operates retail pharmacies and clinics; and offers healthcare services, including administering immunizations for COVID-19, the flu, shingles, and others; assists its customers with high blood pressure, cholesterol, and diabetes; provides guidance on combating obesity and tobacco addiction; and educates customers on managing medications and potential side effects.
In addition, this segment offers healthcare coaching and disease management services to health plans and employers. The Pharmacy Services segment provides integrated suite of pharmacy benefit management (PBM) offerings, including technology solutions, mail delivery services, specialty pharmacy, network and rebate administration, claims adjudication, and pharmacy discount programs, as well as drug benefits under the federal government’s Medicare Part D program and insurance offerings for individuals and groups.
This segment serves health plans, commercial employers, labor groups, and state and local governments.
As of February 26, 2022, the company operated 2,450 retail pharmacy locations in 17 states. Rite Aid Corporation was founded in 1962 and is headquartered in Philadelphia, Pennsylvania.
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