Summary: Walgreens Boots Alliance has agreed to pay $192.5 million to settle a class action lawsuit by Rite Aid investors who accused Walgreens of misleading them about the pending merger between the two drugstore chains in 2017.
Walgreens Boots Alliance has reached a settlement of $192.5 million in a class action lawsuit brought by investors of Rite Aid. The investors accused Walgreens of providing misleading information about the scrutiny of the merger between the two major pharmacy chains. The settlement, which is subject to court approval, comes after Walgreens decided to abandon the takeover plan due to the failure to obtain approval from the Federal Trade Commission. Instead, Walgreens purchased about 42% of Rite Aid’s existing stores for $4.38 billion. The settlement comes at a time when Rite Aid has filed for bankruptcy protection. Under the current proposed bankruptcy plan, Rite Aid’s shares would be dissolved without any compensation to shareholders.
Tags: Walgreens, Rite Aid, lawsuit, merger, investors, pharmacy chains, settlement, class action, bankruptcy