Rite Aid Must Indemnify Ex-Chief Counsel Who Beat Its Lawsuit

Rite Aid Corp. must reimburse the legal expenses of a former top executive it sued over his role in a scandal to inflate the company’s earnings, for which he served six years in prison.

Delaware’s Chancery Court granted summary judgment May 24 to Franklin Brown, the former ex-chief counsel, board vice chairman, and executive vice president who sued Rite Aid for indemnification after the dismissal of its Pennsylvania state court lawsuit against him.

Vice Chancellor Morgan T. Zurn, writing for the court, said Brown had the right to indemnification under provisions of Delaware law, Rite Aid’s bylaws, and the company’s ...