Rite Aid Corporation (RAD)

NEW YORK, December 7, 2018 - The complaint alleges that in connection with the Proposed Transaction, on November 23, 2015, defendants filed a materially false and misleading preliminary proxy statement on Schedule 14A (the "Proxy") with the SEC in violation of 14(a) and 20(a) of the 1934 Act. The Proxy, which recommends that Rite Aid shareholders vote in favor the Proposed Transaction, fails to disclose material information regarding the negotiation and approval of the Proposed Transaction and deprives the Company's shareholders of their right to cast an informed vote on the deal. According to the complaint, the Proxy fails to disclose the following material information, which renders the statements in the Proxy materially false and/or misleading: (a) the terms of a certain alternate bidder's indications of interest; (b) the nature of the Board's financial advisor's conflict of interest; (c) management's financial forecast; (d) management's alternate forecast; (e) discussions regarding financial benefits to the Board and Rite Aid management; (f) discussions regarding management's equity rollovers; and (g) material metrics and assumptions underlying the financial advisor's valuation analysis. Without this material information, the Company's shareholders cannot make an informed decision on how to vote their shares or whether to seek appraisal. Plaintiff seeks damages and injunctive and equitable relief on behalf of holders of Rite Aid stock on October 27, 2015.