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McCune Law Group Has Investigated Rite Aid Corporation Over Alleged Misleading/False Statements
McCune Law Group, McCune Wright Arevalo Vercoski Weck Brandt APC (MLG), has investigated the need to bring a class action lawsuit against Rite Aid Corporation (or “The Company”) alleging it made false and/or misleading statements that have significantly damaged investors. The complaint, captioned Holland v. Rite Aid Corporation, No. 1:23-cv-00589 (N.D. Ohio Mar. 20,2023),brought claims against Rite Aid Corporation based on violations of the Securities Exchange Act of 1934 and is brought on behalf of all purchasers of Rite Aid Corporation securities during the period of April 26, 2018, and March 12, 2023, inclusive (“Class Period”).
The Rite Aid Corporation lawsuit also alleged that the defendants throughout the class period made false and/or misleading statements and/or failed to disclose that (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.
The deadline to file as lead plaintiff has passed. If you have suffered major losses due to the misleading statements of another company, contact our Securities Litigation team of attorneys today by completing the form to arrange a free consultation.
Rite Aid Corporation Class Action Lawsuit Alleged Statements Significantly Damaged Investors
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 on March 14, 2023, on unusually heavy trading volume, to close at $2.66, damaging investors. 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 close.
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.
The lead plaintiff deadline has passed. If you have suffered significant losses due to a company’s misleading statements, contact MLG today.
How Can I serve as a Lead Plaintiff in the Rite Aid Class Action Lawsuit?
The deadline to file as lead plaintiff in the Rite Aid class action lawsuit has now passed. However, if you have experienced major losses due to another company’s negligence or misleading statements, please contact our attorneys today. The filing process can become complicated, here is a general rundown of what to expect:
- Fill out our contact form with your information
- Set up your free consultation
- Meet with our Securities Litigation team
- Discuss your potential case
- Discuss your next steps
Contact our Securities Litigation team today if you have any questions regarding bringing a class action lawsuit against another company.
Frequently Asked Questions
What is a securities class action lawsuit (complaint)?
A securities class action lawsuit (complaint) is a lawsuit brought on behalf of a group of investors who have suffered economic loss in a particular stock or security because of misleading statements, fraudulent acts, or other violations of federal or state securities law.
What is a “Class Period” in a securities class action?
The “class period” is the time frame during which the alleged fraud or other securities law violations is believed to have occurred. People who purchased stock during this period are the only persons who are included in the class action suit. Generally, the class period is determined by the lead plaintiff’s counsel once extensive research and investigation is conducted.
What is a “Lead Plaintiff”?
A Lead Plaintiff is a person(s) or party that is appointed by the court who will stand in for and act on behalf of other class members in the litigation. The Courts selects the lead plaintiff by determining which movant has the largest financial interest among the plaintiff movants, whether that proposed Lead Plaintiff’s claims must are typical of those of the other class members, and whether that proposed Lead Plaintiff will adequately represent the interests of the class.
What is the Lead Plaintiff Deadline?
In securities litigation cases there is what is called the Lead Plaintiff deadline, which is the set statutory deadline in which applications for Lead Plaintiff must be submitted. Applications for Lead Plaintiff must be filed within the 60-day period following the publication of the first-filed-class action complaint in a federal securities case.
Handling This Investigation
Elaine S. Kusel, who joined McCune Law Group, Vercoski, Kusel, Weck, Brandt, APC, (MLG), in 2008 and leads the firm’s New Jersey office. As a nationally renowned class action attorney, she performs a significant role in the firm’s Consumer Fraud Class Action and Securities Litigation divisions.
After graduating from law school, her practice had included fraud litigation, mass torts, and international human rights law. Ms. Kusel has been integral to the successful recovery of multi-million-dollar settlements and verdicts for wronged consumers and investors.
Sherief Morsy joined the McCune Law Group, Vercoski, Kusel, Weck, Brandt, APC, (MLG), New Jersey office in 2020. His practice primarily focuses on consumer fraud class actions, Securities Litigation, and other complex litigation matters.
Prior to joining the firm, Mr. Morsy was a senior associate at a New York City law firm, whose practice focused on complex civil and class action litigation, including securities litigation, antitrust litigation, and consumer class actions. As he previously assisted investors in recovering their losses resulting from corporate securities fraud, he now focuses that experience at McCune Law Group in assisting people who have been victimized by deceptive business practices or other corporate wrongdoing.
Attorney Advertising
McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC is responsible for this solicitation. The information provided on this website is for general information purposes only. The information you obtain is not, nor is it intended to be, legal advice. Use of this website or submission of the online form does not create an attorney-client relationship.
Counsel Richard McCune is licensed to practice only in the state of California. The law firm of McCune Law Group has attorneys licensed to practice law in AZ, CA, IL, MO, NJ, NY, and PA. This information section is not intended to be a solicitation for services in states where it is forbidden for non-barred attorneys from advertising for services, and McCune Law Group does not have attorneys barred in that state. McCune Law Group is a national firm that brings lawsuits in a majority of the states. In states where one of its attorneys are not barred, it does so by filing the complaint along with local counsel barred in that state.
The results discussed do not guarantee, warrant, or predict the results in future cases.