Walgreens Boots Alliance Inc WBA has reportedly consented to a settlement of $192.5 million following allegations that some of the company's executives provided misleading information concerning its 2015 attempt to purchase Rite Aid Corp. RADCQ.
Walgreens will pay Rite Aid shareholders to resolve a federal class-action lawsuit accusing the company of making false statements about how likely it was regulators would approve the transaction, reported Bloomberg, citing a court filing published late Tuesday.
The misleading statements led to an undue hike in Rite Aid's stock value. However, the abrupt withdrawal of the merger in 2017 resulted in significant financial losses for the investors,
A consensus was eventually reached just three weeks before the case was set to go to trial before U.S. District Judge Christopher Conner.
The resolution is anticipated to bring a sigh of relief to Rite Aid's investors, especially given the company's recent filing for Chapter 11.
Price Action: WBA shares are trading higher by 1.18% at $21.50 on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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