Walgreens Settles Rite-Aid Investors' Suit for $192M - Articles

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Posted by: Paul Burch on Oct 19, 2023

Walgreens Boots Alliance has agreed to pay $192.5 million to settle a class action lawsuit by investors in Rite Aid who accused Walgreens of downplaying scrutiny from U.S. antitrust regulators in 2017 over a pending merger between the drug store chains. Reuters reports that the deal, filed in a Pennsylvania federal court last week, is subject to approval. Walgreens ultimately scrapped the takeover plan in 2017 after failing to win approval from the Federal Trade Commission. The settlement with investors follows an announcement Monday that Rite Aid had filed for bankruptcy protection after struggling with high debt from opioid litigation. Under the current proposed bankruptcy plan, the company's shares would be dissolved with no compensation to shareholders.