Bloomberg Law
July 12, 2018, 8:19 PM UTC

Rite Aid Out, Walgreens Still on Hook in Class Suit Over Merger

Jennifer Bennett
Legal Reporter

Rite Aid Corp. won’t face a putative class action alleging it misled shareholders about its merger talks with Walgreens Boots Alliance Inc., but Walgreens will.

Investors said Rite Aid misled them when it described expected merger prices, terms, and closing dates that didn’t pan out, but the U.S. District Court for the Middle District of Pennsylvania disagreed July 11 and dismissed the complaint. However, some of the investors’ complaints against Walgreens can go forward, the court said. Walgreens and Rite Aid began discussing a merger in 2015.

Rite Aid initially told investors Walgreens would purchase the company for $9 per ...

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