Walgreens to settle Rite Aid suit for US$192.5 million

Walgreens to settle Rite Aid suit for US$192.5 million

THE WHAT? Walgreens Boots Alliance has assented to a US$192.5 million settlement in a class action lawsuit bought by Rite Aid investors over the pharmacy conglomerate’s planned acquisition of the drug store chain.

THE DETAILS The pair announced a merger agreement in 2015, which was terminated prior to completion in 2017 after, allegedly, feedback was received from the Federal Trade Commission that the deal would not be approved. The lawsuit accused WBA executives of making false statements regarding the feasibility of gaining regulatory approval.

THE WHY? The group of Rite Aid investors claimed to have suffered losses as stock prices tumbled following the companies’ failed merger. WBA did not comment on the settlement but presumably opted to settle in order to save the cost and uncertainty of pursuing the case through the courts.