Rite Aid Corporation

Ticker: RAD

Class Period Start: 04/14/2022

Class Period End: 09/28/2022

Registration Deadline: 12/19/2022

Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, announces the filing of a class action lawsuit against Rite Aid Corporation (“Rite Aid” or the “Company”) for violations of the federal securities laws on behalf of investors.

A securities class action has been filed in the USDC – E.D.PA. against Rite Aid Corporation (RAD) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Rite Aid securities between April 14, 2022 through September 28, 2022 (the “Class Period”). If you wish to serve as lead plaintiff, you must move the Court no later than December 19, 2022.

The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that:

  • 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;
  • the Company 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; and
  • as a result, the Company’s public statements were materially false and misleading at all relevant times.

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, Matt Schroeder, explained that the large impairment charge was triggered by a change in Rite Aid’s estimate of lives covered by Elixir for 2023 based on the latest selling season.

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, injuring investors, and wiping millions of dollars of investor wealth.

 

 

If you suffered a loss on your investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.

An attorney will contact you at no cost to provide you information about joining the action and answer your questions. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.

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