A PYMNTS Company

Walgreens Settles Investor Lawsuit Over Rite Aid Merger

By  |  October 23, 2023

Walgreens Boots Alliance has agreed to a $192.5 million settlement in a class action lawsuit brought by investors in Rite Aid who alleged that Walgreens had misled them in 2017 concerning the scrutiny surrounding the proposed merger of the two drugstore giants, per Reuters.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The agreement, which was submitted to Pennsylvania federal court on Wednesday, is contingent upon approval by District Judge Jennifer Wilson.

    The lawsuit, which centered on statements made by Walgreens and its executives about the intended merger of the two prominent U.S. pharmacy chains, first announced in 2015, was described by David Knotts, an attorney for the shareholders, as an “intensely fought” case. “We’re very pleased with the result and look forward to the court’s review,” Knotts commented.

    Related: US: Walgreens scraps Rite Aid deal, buys stores instead

    The lawsuit specifically accused Walgreens of minimizing the attention from U.S. antitrust regulators, a practice that allegedly commenced in October 2016. Ultimately, in June 2017, Walgreens abandoned the takeover plan after failing to secure approval from the Federal Trade Commission. Instead, they opted to purchase roughly 42% of Rite Aid’s existing stores for $4.38 billion that same year.

    This settlement comes at a time when Rite Aid is grappling with bankruptcy protection due to substantial debt and costs stemming from opioid litigation.

    Source: Reuters