Rite Aid investors to receive $192.5M as Walgreens settles buyout suit
JHVEPhoto

Walgreens Boots Alliance (NASDAQ:WBA) has agreed to offer $192.5M to reach a deal with Rite Aid (OTC:RADCQ) investors who allege that the drugstore chain misled them as part of a 2015 bid to acquire its smaller rival.
The deal will settle a class-action lawsuit in which litigants argued that Walgreens (WBA) made false statements regarding how likely the regulators would approve its $17.2B buyout offer for Rite Aid (RAD) eight years ago.

The statements boosted the RADS share price, and investors lost billions of dollars when the deal failed to materialize, Bloomberg reported Thursday, citing a document filed in a federal court in Harrisburg, Pennsylvania.
The settlement comes three weeks before the case was set to go to trial before U.S. District Judge Christopher Conner.
Early this week, Rite Aid (RAD) filed for Chapter 11 bankruptcy protection to deal with its massive debt load, including its opioid-related liabilities.



More on Rite Aid, Walgreens, etc.

Rite Aid Shareholders Are Wiped Out Under A Chapter 11 Bankruptcy Plan
Walgreens Boots Alliance, Inc. (WBA) Q4 2023 Earnings Call Transcript
Why I Am Buying Walgreens Stock Going Into Earnings
Rite Aid gets court okay for $3.45B in financing to support operations
NYSE suspends trading of Rite Aid shares amid bankruptcy filing (update)