HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Rite Aid (RAD) Investors with Substantial Losses to Contact Firm’s Attorneys Before May 19th Deadline in Securities Fraud Class Action
SAN FRANCISCO, May 06, 2023 (GLOBE NEWSWIRE) — Hagens Berman urges Rite Aid Corporation (NYSE: RAD) investors who suffered substantial losses to submit your losses now.
Class Period: Apr. 26, 2018 – Mar. 13, 2023
Lead Plaintiff Deadline: May 19, 2023
Contact An Attorney Now: [email protected]
Rite Aid Corporation (RAD) Securities Fraud Class Action:
The litigation focuses on Rite Aid’s compliance with federal regulations concerning its pharmacies’ prescriptions practices and its federal healthcare program reimbursement billing.
According to the complaint, Defendants made false and misleading statements or failed to disclose that Rite Aid: (1) filled hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose until June 2019; (2) ignored evidence that its stores were dispensing unlawful prescriptions and intentionally deleted internal notes about suspicious prescribers written by concerned pharmacists; (4) violated the Controlled Substances Act by knowingly filling unlawful prescriptions for controlled substances; and (5) violated the False Claims Act when it sought reimbursement from federal healthcare programs.
Investors began to learn the truth on Mar. 13, 2023, when the US Department of Justice announced it filed a lawsuit against Rite Aid alleging that the company knowingly filled hundreds of thousands of unlawful prescriptions for controlled substances and knowingly submitted false or fraudulent reimbursement claims for such prescriptions to federal healthcare programs. The DOJ alleges these activities violate the Controlled Substances Act and the False Claims Act and states, in part, “[w]hile making millions of dollars [Rite Aid] opened the floodgates for millions of pills of opioids and other controlled substances to flow illegally out of [its] stores.”
This news sent the price of Rite Aid shares sharply lower.
“We’re focused on investors’ losses and proving Rite Aid’s decision to put profits ahead of safety enabled it to record illegally-generated revenues,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Rite Aid and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Rite Aid should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895