An investor in shares of Rite Aid Corporation (NYSE:RAD), filed a lawsuit against the takeover of Rite Aid Corporation by Walgreens Boots Alliance, Inc.
Investors who purchased shares of Rite Aid Corporation (NYSE:RAD) and currently hold any of those NYSE:RAD shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:RAD stockholders by agreeing to sell Rite Aid Corporation too cheaply via an unfair process to Walgreens Boots Alliance, Inc.
On October 27, 2015, Walgreens Boots Alliance, Inc. (Nasdaq: WBA) and Rite Aid Corporation (NYSE:RAD)announced that they have entered into an agreement under which Walgreens Boots Alliance will acquire all outstanding shares of Rite Aid Corporation (NYSE:RAD)for $9.00 per share in cash, for a total enterprise value of approximately $17.2 billion.
However, plaintiff claims that the company’s Board filed a misleading proxy statement that deprived them of the opportunity to make an informed decision about the deal. The plaintiff alleges that the proposed consideration NYSE:RAD shareholders will receive is grossly inadequate and undervalues Rite Aid Corporation. Indeed, at least one analyst has set the high target price for NYSE:RAD shares at $10.00 per share and that NYSE:RAD shares traded as recently as August 2015 in the open market as high as $9.32 per share. Rite Aid Corporation reported that its Total Revenue rose from over $25.39 billion for the 52 weeks period that ended on March 2, 2013 to over $26.52 billion for the 52 weeks period that ended on February 28, 2015 and that its Net Income for those respective time periods increased from $118.11 million to over $2.1 billion. Shares of Rite Aid Corporation (NYSE:RAD) grew from $1.03 per share in December 2012 to as high as $9.32 per share in August 2015. In addition, the plaintiff alleges that the process is also unfair to NYSE:RAD stockholders. The plaintiff claims that the defendants agreed to preclusive deal protection devices, such as a hefty $325 million termination fee provision.
On January2 22, 2016, NYSE:RAD shares closed at $7.78 per share.
Those who are current investors in Rite Aid Corporation (NYSE:RAD) shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
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