National Law Firm Investigating Rite Aid Corporation Over Alleged False/Misleading Statements That Damaged Investors
Complaint alleges That Rite Aid Corporation Made Misleading Statements Regarding Unlawfully Filled Prescriptions
ONTARIO, Calif., March 30, 2023 /PRNewswire/ -- McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC (MLG) – a national law firm specializing in Securities Litigation, Commercial Litigation, and Class Actions, is investigating Rite Aid Corporation (NYSE: RAD) ("Rite Aid" or the Company") over allegations that Rite Aid made false and/or misleading statements that failed to disclose the unlawful filling hundreds of thousands of prescriptions for controlled substances that lacked a legitimate medical purpose.
A case, captioned Holland v. Rite Aid Corporation, No. 1:23-cv-00589 (N.D. Ohio Mar. 20, 2023), brings claims on behalf of all purchasers of Rite Aid securities during the period of April 26, 2018, and March 12, 2023, inclusive ("Class Period") against Rite Aid Corporation based on violations of the Securities Exchange Act of 1934. As a result, investors have until May 19, 2023, to file as lead plaintiff in the lawsuit.
The lawsuit alleges that the defendants throughout the class period made false and/or misleading statements and/or failed to disclose: (1) until at least June 2019, Rite Aid filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, including for potentially lethal opioids such as oxycodone and fentanyl; (2) Rite Aid pharmacists filled these prescriptions despite clear "red flags" that indicated that the prescriptions were unlawful; (3) Rite Aid ignored evidence that its stores were dispensing unlawful prescriptions, and intentionally deleted internal notes about suspicious prescribers written by concerned pharmacists; (4) by knowingly filling unlawful prescriptions for controlled substances, Rite Aid violated the Controlled Substances Act and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the False Claims Act; (5) as a result, it was at risk of prosecution by federal authorities such as the United States Department of Justice ("DOJ") and (6) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.
However, on Monday, March 13, 2023, after market hours, the DOJ announced in a press release that it had filed a complaint in intervention against Rite Aid, thus intervening in a whistleblower lawsuit brought under the False Claims Act (FCA) against Rite Aid and various subsidiaries, alleging that Rite Aid knowingly filled unlawful prescriptions for controlled substances. The DOJ also announced that it was suing Rite Aid for violations of the Controlled Substances Act (CSA).
On this news, Rite Aid's stock fell $0.62 per share, or 18.9%, on unusually heavy trading volume, to close at $2.66 on March 14, 2023. Then, on March 15, 2023, Rite Aid's stock fell as much as $0.235, or 8.8%, before closing at $2.57, a 3.8% decline from the prior day's closing price. As a result of Defendants' wrongful acts and omissions, and the precipitous decline in the market value of the Company's common shares, Plaintiff and the other Class members have suffered significant losses and damages.
About MLG's Securities Litigation Practice:The Securities Litigation attorneys of MLG provide representation for investors who have been wronged through fraud, scams, and schemes. Our team has many years of experience bringing claims on behalf of investors and pursues all avenues of compensation to maximize our clients' recovery as they navigate this tumultuous time. With hard-hitting tactics and dedicated legal professionals protecting our clients' interests, MLG's Securities Litigation Practice Group hopes to hold companies accountable for their unfair or illegal financial practices.
About McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC: McCune Law Group has a deep history of success for its clients. MLG maintains California offices in Ontario, San Bernardino, Calimesa, Palm Desert, and Irvine and supports its national practice with offices in Arizona, Illinois, and New Jersey. Visit mccunewright.com for more information.
About the Lead Plaintiff Process: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or otherwise acquired shares during the Class Period to seek appointment as lead plaintiff. The lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. The lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the action lawsuit. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the class action lawsuit.
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CONTACT: dct@mccunewright.com
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SOURCE McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt, APC
