NEW YORK, Nov. 08, 2022 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Pennsylvania on behalf of those who acquired Rite Aid Corporation ("Rite Aid" or the "Company") RAD securities between April 14, 2022 through September 28, 2022 (the "Class Period"). Investors have until December 19, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Rite Aid operates a retail drugstore chain in various states and the District of Columbia. The Company sells prescription drugs and other products, such as health and beauty aids, nonprescription medications, and cosmetics.
On September 29, 2022, Rite Aid announced a $252.2 million charge for the impairment of goodwill related to the Company's PBM services business, Elixir. On an earnings call held later in the day, Rite Aid's Chief Financial Officer ("CFO"), Matt Schroeder, explained that the large impairment charge was related to Elixir based on "an update to our estimate of lives[, i.e., new members,] for 2023 based on the latest selling season," and that Rite Aid "expected[ed] lives to go down." On this news, the price of Rite Aid shares declined by $1.97 per share, or approximately 28.02%, from $7.03 per share to close at $5.06 on September 29, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) 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; and (2) Rite Aid 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.
If you purchased or otherwise acquired Rite Aid securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP's website: http://www.kmllp.com.
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