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id: 626, Created by Stan Vick, Scout
Rite Aid (RAD) Case on Misleading
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- DOJ filed a lawsuit against Rite Aid, alleging filling unlawful prescriptions for controlled substances.
- On this news, $RAD fell 18.9%, damaging investors.
- Investors suspect Rite Aid & its Leaders of multiple violations which brought damage to shareholders.
On March 13, 2023, the DOJ announced in a press release that it had filed a lawsuit against Rite Aid, thus intervening in a whistleblower lawsuit brought under the False Claims Act (FCA) against Rite Aid and various subsidiaries, alleging that Rite Aid knowingly filled unlawful prescriptions for controlled substances. The DOJ also announced that it was suing Rite Aid for violations of the Controlled Substances Act (CSA).
On this news, $RAD fell 18.9%, damaging investors.
Taking all the facts into account, Investors have reasons to Suspect Rite Aid and its Leaders of making false and/or misleading statements and/or failing to disclose, among other things, that:
- Until at least June 2019, Rite Aid filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, including for potentially lethal opioids such as oxycodone and fentanyl;
- Rite Aid pharmacists filled these prescriptions despite clear “red flags” that indicated that the prescriptions were unlawful;
- Rite Aid ignored evidence that its stores were dispensing unlawful prescriptions, and intentionally deleted internal notes about suspicious prescribers written by concerned pharmacists;
- by knowingly filling unlawful prescriptions for controlled substances, Rite Aid violated the Controlled Substances Act and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the False Claims Act;
- it was at risk of prosecution by federal authorities such as the United States Department of Justice (“DOJ”)
As a result, Company's statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times. When the true details entered the market, the lawsuit claims that investors suffered damages.
Failure to Disclose,
Breach of Fiduciary duty,
Shock Event Date
13 March 2023
20 March 2023
Lead Plaintiff Deadline
19 May 2023
Hon. James S. Gwin