Annuncio • Sep 04
Rite Aid Corporation Announces Resignation of Jeffrey S. Stein, as Chief Restructuring Officer Rite Aid Corporation announced Jeffrey S. Stein, who has stepped down as Chief Restructuring Officer in connection with the Company’s emergence from Chapter 11. Annuncio • Apr 05
Rite Aid Announces Availability of Opill At All Locations Rite Aid Corporation announced Opill, the first daily oral contraceptive FDA-approved for purchase without a prescription, is now available in all stores. Opill is a progestin-only, daily oral contraceptive (birth control pill) that’s safe and effective when used as directed to help prevent pregnancy. Opill over-the-counter birth control pills are available at Rite Aid for the suggested retail price of $19.99 for a one-month supply and $49.99 for a three-month supply. Both options are available for purchase at Rite Aid stores nationwide and online at RiteAid.com. There are no restrictions for purchasing Opill. Rite Aid pharmacists are available to answer any customer questions about Opill. Annuncio • Jan 31
Rite Aid Corporation (OTCPK:RADC.Q) acquired Tuttles Pharmacy Inc from Pellegrini family. Rite Aid Corporation (OTCPK:RADC.Q) acquired Tuttles Pharmacy Inc. from Pellegrini family on January 29, 2024.Rite Aid Corporation (OTCPK:RADC.Q) completed the acquisition of Tuttles Pharmacy Inc. from Pellegrini family on January 29, 2024. Annuncio • Jan 13
Rite Aid Corporation announced delayed 10-Q filing On 01/12/2024, Rite Aid Corporation announced that they will be unable to file their next 10-Q by the deadline required by the SEC. Annuncio • Nov 21
Robbins Geller Rudman & Dowd LLP Announces Proposed Settlement in the Rite Aid Corporation Securities Litigation The following statement is being issued by Robbins Geller Rudman & Dowd LLP regarding the Rite Aid Securities Litigation: Investor purchased or acquired Rite Aid Corporation (Rite Aid) common stock between October 20, 2016 and June 28, 2017, inclusive (the “class”), investor could receive a payment from a class action settlement. Certain persons are excluded from the definition of the class as set forth in the stipulation of settlement. Pursuant to Rule 23 of the Federal Rules of Civil Procedure and by Order of the United States District Court for the Middle District of Pennsylvania, that in the above-captioned litigation (the “Action”), which is a certified class action, a Settlement has been proposed for $192,500,000.00 in cash. A hearing will be held on February 7, 2024, at 1:30 p.m., before the Honorable Jennifer P. Wilson, in Courtroom 8A, at the United States District Court for the Middle District of Pennsylvania, Sylvia H. Rambo U.S. Courthouse, 1501 North 6th Street, Harrisburg, PA 17102, for the purpose of determining whether: (1) the proposed Settlement should be approved by the Court as fair, reasonable, and adequate; (2) the proposed Plan of Allocation for distribution of the Settlement proceeds is fair, reasonable, and adequate and therefore should be approved; and (3) the application of Lead Counsel for the payment of attorneys’ fees and expenses from the Settlement Fund, including interest earned thereon, and requests by Plaintiffs for their time and expenses, should be approved. Annuncio • Oct 21
Rite Aid Corporation Announces Board Appointments On October 15, 2023, Rite Aid Corporation appointed Carrie Teffner and Paul Keglevic to the Company’s Board of Directors. Upon appointment, Mr. Keglevic and Ms. Teffner joined the Audit Committee of the Board, where Mr. Keglevic will serve as Chair. Ms. Teffner was also appointed as a member of the Compensation Committee of the Board. In connection with their respective appointments, Ms. Teffner and Mr. Keglevic will each be entitled to receive a cash directors’ fee equal to $50,000 per month, payable in arrears, and reimbursement for travel and lodging expenses associated with the directors’ services on the Board. Ms. Teffner has over 30 years of strategic, financial and operational leadership experience assisting retail and consumer product companies in driving growth and profitability. She has deep expertise leading successful large-scale transformation initiatives and has served as Executive Vice President and Chief Financial Officer at several Fortune 500 companies. Ms. Teffner currently serves on the boards of DXC Technology, International Data Group and BFA Industries. She previously served on the boards of Ascena Retail Group, Avaya and GameStop. Mr. Keglevic is an NACD-certified director with over 45 years of leadership experience and deep expertise in finance and accounting, operational improvement and turnarounds, restructuring and risk management across a range of industries. He has served as CEO, CFO, Chief Restructuring Officer and Chief Risk Officer at numerous companies, most recently as CEO of Energy Future Holdings. Earlier in his career, Mr. Keglevic was a Partner and member of the U.S. leadership team at PricewaterhouseCoopers. He currently serves on the boards of WeWork, Evergy and Envision Healthcare. Mr. Keglevic previously served on the boards of Ascena Retail Group, Bonanza Creek Energy, Clear Channel Holdings, Cobalt International Energy and Frontier Communications, among others. Prior to their respective appointments, Ms. Teffner and Mr. Keglevic, each entered into a letter agreement with the Company, dated as of July 5, 2023, pursuant to which Ms. Teffner and Mr. Keglevic provided consulting services to the Company on matters relating to refinancing, restructuring and deleveraging for the period between July 5, 2023 until their respective appointments on October 15, 2023. During such time, Ms. Teffner and Mr. Keglevic each received $200,000 in the aggregate, consisting of monthly fees payable by the Company pursuant to their respective letter agreements. Annuncio • Oct 20
Rite Aid Corporation(OTCPK:RADC.Q) dropped from S&P TMI Index Rite Aid Corporation(OTCPK:RADC.Q) dropped from S&P TMI Index Annuncio • Oct 17
Rite Aid Corporation Filed for Bankruptcy Rite Aid Corporation, along with its 121 affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the District of New Jersey on October 15, 2023. The debtor listed both its assets and liabilities in the range of $1 billion to $10 billion. The debtor is represented by Michael D. Sirota of Cole Schotz P.C., Kirkland & Ellis LLP and Kirkland & Ellis International LLP as its legal counsels. The debtor also hired Guggenheim Partners as its investment banker, Alvarez & Marsal North America, LLC as its financial, tax, and restructuring advisor and Kroll Restructuring Administration as its notice and claims agent. Annuncio • Oct 13
Rite Aid Corporation announced delayed 10-Q filing On 10/12/2023, Rite Aid Corporation announced that they will be unable to file their next 10-Q by the deadline required by the SEC. Annuncio • Sep 26
Rite Aid Corporation is Heading Towards Bankruptcy Rite Aid Corporation is heading towards bankruptcy, as of September 22, 2023. Company is expected to file a Chapter 11 bankruptcy petition within the next couple of days as it nears an agreement with existing creditors. The company is finalizing a reorganization pact with its largest creditors/ is leading towards a bankruptcy proceeding under Chapter 11. Annuncio • Sep 16
Rite Aid and Bartell Drugs Announce Availability of Appointments for Updated COVID-19 Vaccine Rite Aid announced that scheduling is now available for eligible customers seeking the updated COVID-19 (2023-2024) vaccines at its locations and at Bartell Drugs locations in the Pacific Northwest. Appointments are available beginning on September 22. The updated COVID-19 vaccine provides enhanced protection against currently circulating variants of COVID-19. The vaccine is recommended for individuals six months and older. An updated COVID-19 vaccine is needed for those who have not received a COVID-19 vaccine in the past two months, according to the CDC. Rite Aid pharmacists are trained to immunize customers ages three and older. Other immunizations, including the flu vaccine, can also be scheduled via the online scheduling tool. Both the COVID-19 and flu vaccinations can be administered during the same appointment. Annuncio • Sep 12
Rite Aid Announces Availability of OTC NARCAN Nasal Spray At All Locations Rite Aid announced that NARCAN Nasal Spray, a medication used to reverse the effects of an opioid overdose, is available at all locations nationwide, including Bartell Drugs in the Pacific Northwest. NARCAN Nasal Spray can be purchased over the counter without a prescription. NARCAN Nasal spray (naloxone HCl 4 mg) is a medication designed to rapidly reverse the effects of a life-threatening opioid emergency and is the standard treatment for opioid overdose. It is now FDA-approved for OTC use and is available for purchase at Rite Aid stores nationwide and online at Rite Aid.com. Each carton of NARCAN Nasal Spray contains two single-dose devices. Each device contains one dose of medicine. The carton is readily available on shelves and at the pharmacy counter at Rite Aid stores and is priced at $45.99. Annuncio • Aug 05
Rite Aid Corporation Announces Availability of Flu and RSV Vaccine Appointments at All Locations Rite Aid Corporation announced appointments for flu and RSV vaccines are available at all store locations, including Bartell Drugs in the Pacific Northwest. Customers can now schedule appointments to protect themselves and family members against the upcoming respiratory virus season through Rite Aid's online scheduler. Rite Aid will be offering flu vaccines protecting against the strains of influenza that are expected to circulate in the United States this year, as well as Flumist, a nasal spray flu vaccine, which is in limited supply at all locations. Customers receiving their flu shot will get a coupon for $5 off a $25 in-store purchase from now until Sept. 30, 2023. This offer excludes stores in New York or New Jersey and some restrictions apply. The Centers for Disease Control (CDC) recommends adults 60 years and older receive a single dose of RSV vaccine, based on discussions with their pharmacist or other healthcare provider. The RSV vaccine may be given at the same time as other vaccines. Rite Aid and Bartell Drugs also offer COVID-19 and other routine vaccinations at all locations, helping customers and families stay up to date on vaccines that provide critical protection against certain diseases, some of which are required for certain ages, activities or for overseas travel. Rite Aid and Bartell drugs will provide the new CDC-recommended COVID-19 vaccine once available, which will better protect against the most prevalent COVID-19 strain. Rite Aid pharmacists can provide additional guidance on which vaccines are right for each customer and advise on the timing of administration of each vaccine. To help customers assess their needs for routine immunizations, Rite Aid offers an Immunization Evaluation Questionnaire on its website. The questionnaire guides customers to ensure they are up to date with all necessary immunizations based on their age, conditions, or occupation. Rite Aid and Bartell's pharmacists can immunize adults and children three years of age and older against influenza. To schedule an appointment for a flu vaccine or other immunizations, Rite Aid customers can use the online scheduling tool at Rite Aid.com. Bartell Drugs customers can use the online scheduling tools linked here. All locations are currently accepting walk-ins. How online scheduling works: Using the online scheduling tool, customers may select a convenient time and location to schedule a vaccine appointment for flu, COVID-19 and other recommended vaccinations. Customers supply necessary information and consent forms securely online in advance of their appointment. Reminders will be sent in the days leading up to the appointment via customers' chosen communication preferences by text or email. New Risk • Aug 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Negative equity (-US$947m). Minor Risks Less than 1 year of cash runway based on current free cash flow (-US$383m). Currently unprofitable and not forecast to become profitable over next 3 years (US$233m net loss in 3 years). Share price has been volatile over the past 3 months (13% average weekly change). Annuncio • Aug 02
Rite Aid Corporation Announces Executive Changes Rite Aid Corporation announced that on July 28, 2023, Justin Mennen, the EVP and Chief Digital and Technology Officer of the Company, ceased to be employed by the Company, effective immediately. Annuncio • Jul 13
Rite Aid Corporation, Annual General Meeting, Jul 26, 2023 Rite Aid Corporation, Annual General Meeting, Jul 26, 2023. Major Estimate Revision • Jul 06
Consensus EPS estimates fall by 52%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from US$21.8b to US$22.7b. Forecast EPS reduced from -US$8.23 to -US$12.50 per share. Consumer Retailing industry in the US expected to see average net income growth of 13% next year. Consensus price target down from US$1.50 to US$1.00. Share price fell 4.6% to US$1.46 over the past week. New Risk • Jul 01
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Negative equity (-US$947m). Minor Risks Less than 1 year of cash runway based on current free cash flow (-US$383m). Currently unprofitable and not forecast to become profitable over next 2 years (US$292m net loss in 2 years). Shareholders have been diluted in the past year (2.1% increase in shares outstanding). Market cap is less than US$100m (US$83.4m market cap). Reported Earnings • Jun 29
First quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2024 results: US$5.56 loss per share (further deteriorated from US$2.03 loss in 1Q 2023). Revenue: US$5.65b (down 6.0% from 1Q 2023). Net loss: US$306.7m (loss widened 178% from 1Q 2023). Revenue exceeded analyst estimates by 8.1%. Earnings per share (EPS) missed analyst estimates by 130%. Revenue is expected to decline by 1.4% p.a. on average during the next 3 years, while revenues in the Consumer Retailing industry in the US are expected to grow by 4.2%. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has fallen by 55% per year, which means it is performing significantly worse than earnings. Annuncio • Jun 13
Rite Aid Corporation to Report Q1, 2024 Results on Jun 29, 2023 Rite Aid Corporation announced that they will report Q1, 2024 results on Jun 29, 2023 Annuncio • Jun 10
Rite Aid Corporation Names Thomas Sabatino Chief Legal Officer Rite Aid announced that Thomas Sabatino has joined the company as Executive Vice President and Chief Legal Officer. Sabatino will play a pivotal role in the company’s growth strategy to help create meaningful customer, client, and member experiences for millions of Americans. As Chief Legal Officer, he will oversee the organization’s legal affairs, including enterprise risk management, compliance, regulatory affairs, and privacy. Sabatino will become a member of the company's executive leadership team and report to Burr. He brings four decades of experience in the legal field navigating complex business needs. He was most recently the Executive Vice President and General Counsel at Tenneco Inc. His expertise runs deep in the healthcare industry with previous executive roles at Aetna, Walgreen Boots Alliance, Schering Plough Corp., and Baxter International Inc., where in each instance he was instrumental in driving large-scale growth and operational effectiveness. Sabatino currently serves as a member of the Board of Directors of the Humane Society of the United States and the South Florida Wildlife Center. He is Chair Emeritus of the International Institute for Conflict Prevention and Resolution and is on the Board of Advisors of the University of Pennsylvania Carey School of Law. Annuncio • Jun 06
Rite Aid Announces Launch of RYSHI Beauty and Personal Care Essentials Rite Aid announced the launch of RYSHI™? - its exclusive collection of clean beauty and personal care essentials designed to let the real shine through. Spanning across multiple categories, RYSHI™? products offer better-for-you ingredients at an accessible price point so customers can conveniently build their beauty toolkit at their neighborhood Rite Aid. The full collection offers a vast range of products so customers can find answers to all their beauty and grooming needs under one trusted brand. From vegan lashes to hydrogel eye and sheet masks, to sunscreen, body wash, and razors, RYSHI™®? everyday essentials and self-pampering favorites are all priced under $20 to provide accessible, high-quality offerings to Rite Aid customers. To help customers embrace their true self and feel confident, radiant and clean, the RYSHI™? brand features a wide selection of products, including: Gua Shas/Facial Massagers, Facial Wipes, Hydrogel Eye Masks, Sheet Masks, Vegan Eye Lashes, Makeup Applicators, Eyelash Curlers, Hand Cream, Body Wash, Cotton Balls/Rounds, Sunscreen, Dry Brushes, Nail Care, Razors.Rite Aid created RYSHI™? with a commitment to clean and quality products. The collection is free from ingredients of concern such as parabens, perfluorinated substances (PFAS), triclosan, formaldehyde and formaldehyde releasers. In addition, all RYSHI™? product are independently lab tested to ensure product performance and safety and are backed by a 100% satisfaction guarantee. RYSHI™? will continue to expand its offerings through 2023, boasting more than 300 products--exclusively available at Rite Aid stores and on Rite Aid.com. Annuncio • May 24
Elixir Announces the Next Wave of Innovation for Pharmacy Benefits Technology Platform Elixir has announced details of the next release of its Laker Software technology platform. The upcoming enhancements include new automated workflows, a customer service tool and modernization of the user interface. The upgrade will include a range of advanced functionalities that are designed to help customers better manage their pharmacy claims adjudication data and streamline workflows. The new features will allow users to access and share data more efficiently, collaborate more effectively, and improve productivity. Built on a resilient, scalable architecture, the Laker Software platform is a 100% virtualized environment. The platform processes millions of paid claims per year and is SOC 1 Type 2 certified. It has multiple levels of data security and redundant backup systems. Laker Software provides a full set of robust capabilities, including: Claims Processing/Adjudication, Call Center, Plan Set Up, Eligibility, Accumulator, Accounts Payable/Receivable, Prior Authorization, Reporting. Customers will begin to beta test some of the platform's newest features shortly, and other enhancements will follow as the next generation of Laker Software evolves. Customers can expect to see improvements in cost reduction due to automation, solutions for improved plan design and channel management, and advanced analytics and statistical analyses. This is in addition to a cloud-based infrastructure and redesigned user interface, allowing for even more flexibility and a better customer experience. Major Estimate Revision • Apr 27
Consensus EPS estimates fall by 67%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from US$20.9b to US$22.1b. Forecast EPS reduced from -US$3.61 to -US$6.03 per share. Consumer Retailing industry in the US expected to see average net income growth of 10% next year. Consensus price target of US$2.50 unchanged from last update. Share price fell 8.9% to US$2.16 over the past week. Reported Earnings • Apr 20
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: US$13.72 loss per share (further deteriorated from US$9.96 loss in FY 2022). Revenue: US$24.1b (down 1.9% from FY 2022). Net loss: US$749.9m (loss widened 39% from FY 2022). Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) missed analyst estimates by 31%. Revenue is expected to decline by 2.0% p.a. on average during the next 2 years, while revenues in the Consumer Retailing industry in the US are expected to grow by 4.4%. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has fallen by 46% per year, which means it is performing significantly worse than earnings. Price Target Changed • Apr 02
Price target decreased by 22% to US$3.00 Down from US$3.83, the current price target is an average from 2 analysts. New target price is 34% above last closing price of US$2.24. Stock is down 73% over the past year. The company is forecast to post a net loss per share of US$10.49 next year compared to a net loss per share of US$9.96 last year. Annuncio • Jan 14
Department of Justice Intervenes in Baron & Budd Whistleblower Lawsuit Against Rite Aid Law firm of Baron & Budd announced the U.S. Department of Justice has decided to intervene and take primary responsibility litigating a whistleblower lawsuit filed against Rite Aid for violations of the False Claims Act and the Controlled Substances Act. The whistleblowers in this case are former Rite Aid pharmacy employees represented by Baron & Budd. The lawsuit alleges the company knowingly dispensed controlled substances outside the usual course of the professional practice of pharmacy and without a legitimate medical purpose and billed government healthcare programs for the fraudulently dispensed prescriptions. The whistleblowers allege that “Rite Aid formally and informally incentivized and pressured its pharmacists to fill all prescriptions presented at its pharmacies – regardless of validity – resulting in prescriptions that were clearly not medically necessary being filled and billed to Government Programs, the public health and public fisc be damned.” The lawsuit alleges that taxpayer-funded health care programs, such as Medicare, Medicaid, and Tricare, only cover the costs of valid prescriptions issued for legitimate medical purposes, but these programs have paid out billions of dollars for medically unnecessary opioid prescriptions filled by Rite Aid pharmacies. The suit also alleges that, as an operator of a large network of retail pharmacies, Rite Aid had the capability, data, and information to help inform safe and responsible opioid dispensing practices, but the company chose the bottom line over the safety of the communities in which it operates. The suit alleges that Rite Aid consistently disregarded its duties to provide adequate staffing, resources, and information to its pharmacists and did not properly identify, investigate, and resolve red flag prescriptions before dispensing. Instead, the suit alleges that Rite Aid routinely chose profits over people, and created an environment where pharmacists were expected to dispense any and all prescriptions to fuel Rite Aid’s business interests. Price Target Changed • Jan 04
Price target decreased to US$3.67 Down from US$4.00, the current price target is an average from 3 analysts. New target price is 9.8% above last closing price of US$3.34. Stock is down 77% over the past year. The company is forecast to post a net loss per share of US$10.28 next year compared to a net loss per share of US$9.96 last year. Price Target Changed • Dec 22
Price target decreased to US$3.83 Down from US$4.17, the current price target is an average from 3 analysts. New target price is 12% above last closing price of US$3.43. Stock is down 75% over the past year. The company is forecast to post a net loss per share of US$10.28 next year compared to a net loss per share of US$9.96 last year. Annuncio • Dec 22
Rite Aid Corporation Provides Earnings Guidance for the Fiscal Year 2023 Rite Aid Corporation provided earnings guidance for the fiscal year 2023. For the year, total revenues are expected to be between $23.7 billion and $24.0 billion in fiscal 2023. Retail Pharmacy Segment revenue is expected to be between $17.4 billion and $17.6 billion and Pharmacy Services Segment revenue is expected to be between $6.3 billion and $6.4 billion (net of any intercompany revenues to the Retail Pharmacy Segment). Net loss is expected to be between $584 million and $551 million. Annuncio • Dec 08
Rite Aid Corporation to Report Q3, 2023 Results on Dec 21, 2022 Rite Aid Corporation announced that they will report Q3, 2023 results at 9:30 AM, US Eastern Standard Time on Dec 21, 2022 Annuncio • Nov 22
Bronstein, Gewirtz & Grossman, LLC Notifies Rite Aid Corporation (RAD) Investors of Class Action and Encourages Investors to Actively Participate Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Rite Aid Corporation and certain of its officers, on behalf of all persons and entities that purchased, or otherwise acquired Rite Aid securities between April 14, 2022 and September 28, 2022, both dates inclusive. This class action seeks to recover damages against Defendants for alleged violations of the Securities Exchange Act of 1934. The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: despite representations to the contrary, the number of new members that the Elixir PBM services business was adding during the selling season ending on January 1, 2023 was in material decline; Rite Aid was likely to recognize a significant charge for the impairment of goodwill related to Elixir due to a decrease in "lives" covered by Elixir's PBM services business; and as a result, the Company's public statements were materially false and misleading at all relevant times. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 6 experienced directors. 1 highly experienced director. Independent Director Bari Harlam was the last director to join the board, commencing their role in 2020. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Annuncio • Oct 25
Bronstein, Gewirtz & Grossman, LLC Files Lawsuit Against Rite Aid Corporation and Certain of Its Officers Bronstein, Gewirtz & Grossman, LLC notified investors that a class action lawsuit has been filed against Rite Aid Corporation and certain of its officers, on behalf of all persons and entities that purchased, or otherwise acquired Rite Aid securities between March 16, 2018 and August 29, 2022, both dates inclusive (the Class Period). This class action seeks to recover damages against Defendants for alleged violations of the Securities Exchange Act of 1934 (the Exchange Act). The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) despite representations to the contrary, the number of new members (lives) that the Elixir PBM services business was adding during the selling season ending on January 1, 2023 was in material decline; (2) Rite Aid was likely to recognize a significant charge for the impairment of goodwill related to Elixir due to a decrease in "lives" covered by Elixir's PBM services business; and (3) as a result, the Company's public statements were materially false and misleading at all relevant times. Annuncio • Oct 21
Rite Aid Corporation Investors with Substantial Losses Have Opportunity to Lead the Rite Aid Class Action Lawsuit Robbins Geller Rudman & Dowd LLP announced that purchasers or acquirers of Rite Aid Corporation securities between April 14, 2022 and September 28, 2022, inclusive (the Class Period) have until December 19, 2022 to seek appointment as lead plaintiff in the Rite Aid class action lawsuit. Captioned Page v. Rite Aid Corporation, No. 22-cv-04201 (E.D. Pa.), the Rite Aidclass action lawsuit charges Rite Aid and certain of its top executives with violations of the Securities Exchange Act of 1934. Case Allegations: Rite Aid operates through two segments, Retail Pharmacy and Pharmacy Services. Rite Aid’s Pharmacy Services segment provides an integrated suite of pharmacy benefit management (“PBM”) offerings through, among other things, Rite Aid’s Elixir subsidiary, including technology solutions, mail delivery services, specialty pharmacy, network and rebate administration, claims adjudication, and pharmacy discount programs. The Rite Aid class action lawsuit alleges that defendants throughout the Class Period failed to disclose that: (i) despite representations to the contrary, the number of new members (lives) that the Elixir PBM services business was adding during the selling season ending on January 1, 2023 was in material decline; and (ii) Rite Aid was likely to recognize a significant charge for the impairment of goodwill related to Elixir due to a decrease in “lives” covered by Elixir’s PBM services business. On September 29, 2022, Rite Aid announced a $252.2 million charge for the impairment of goodwill related to Rite Aid’s Elixir subsidiary. On an earnings call held later in the day, Rite Aid’s CFO, defendant Matt Schroeder, explained that the large impairment charge was related to Elixir based on “an update to estimate of lives for 2023 based on the latest selling season,” and that Rite Aid “expect[ed] lives to go down.” On this news, Rite Aid’s stock price fell by more than 28.02%, damaging investors. The Lead Plaintiff Process: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Rite Aid securities during the Class Period to seek appointment as lead plaintiff in the Ride Aid class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Rite Aid class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Rite Aid class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Rite Aid class action lawsuit. Reported Earnings • Sep 30
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: US$6.07 loss per share (further deteriorated from US$1.86 loss in 2Q 2022). Revenue: US$5.90b (down 3.5% from 2Q 2022). Net loss: US$331.3m (loss widened 230% from 2Q 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates significantly. Revenue is forecast to stay flat during the next 3 years compared to a 4.3% growth forecast for the Consumer Retailing industry in the US. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 13% per year. Annuncio • Sep 30
Rite Aid Corporation Announces Impairment Charges for the Second Quarter Ended August 27, 2022 Rite Aid Corporation announced impairment charges for the second quarter ended August 27, 2022. For the quarter, the company reported goodwill and intangible asset impairment charges of $252,200,000. 