Rite Aid (RAD) Opioids Prescriptions Case

E.D. Pennsylvania

Court

2:23-cv-02962

Case number

26 Apr 2018

Class period Start

25 Aug 2023

Class period End

19 May 2023

Lead Plaintiff motion deadline

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.

Case Status

Lead Plaintiff Appointed

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

25 August 2023

Filing date

20 March 2023

Lead Plaintiff Deadline

19 May 2023

Judge

Hon. James S. Gwin

Rite Aid (RAD) Opioids Prescriptions Case

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