RITE AID INVESTOR ALERT: Kaplan Fox & Kilshiemer LLP Notifies Rite Aid Investors of a Class Action Lawsuit and Upcoming Deadline

NEW YORK, Oct. 26, 2022 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Rite Aid Corporation ("Rite Aid" or the "Company") RAD. A class action complaint has been filed on behalf of investors that purchased or otherwise acquired Rite Aid securities between April 14, 2022 and September 28, 2022, inclusive (the "Class Period").

If you acquired Rite Aid securities during the Class Period and would like to discuss our investigation or your rights to recover losses, please click below:

Rite Aid Investigation

Or contact us by emailing pmayer@kaplanfox.com or by calling (646) 315-9003 or our toll free number 1-800-290-1952.

If you are a member of the proposed Class, you may move the court no later than December 19, 2022 to serve as a lead plaintiff for the purported class.  You need not seek to become a lead plaintiff in order to share in any possible recovery. 

Rite Aid, through its subsidiaries, operates a chain of retail drugstores in the U.S. The Company operates through two segments, Retail Pharmacy and Pharmacy Services. Pharmacy Services provides pharmacy benefits management ("PBM") offerings through the Company's Elixir subsidiary.

According to the complaint, 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. 

Following 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.

According to the complaint, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose, among other things, that (1) despite representations to the contrary, the number of new members, or "lives", that the Elixir Pharmacy Benefit Management ("PBM") services business was adding during the selling season ending on January 1, 2023 was in material decline, and (2) 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.

WHY CONTACT KAPLAN FOX - Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.

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If you have any questions about this Notice, your rights, or your interests, please contact: 

Pamela Mayer
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax:  (415) 772-4707
E-mail: lking@kaplanfox.com