|Company name||Fred’s, Inc.|
|Class period||December 20, 2016 to June 28, 2017|
|Court||Western District of Tennessee|
NEW YORK, August 26, 2019 –Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Western District of Tennessee on behalf of all investors that purchased Fred’s Inc (NYSE: FRED) securities between December 20, 2016 to June 28, 2017 (the “Class Period”). Investors have until August 26, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The complaint alleges that Walgreens Boots Alliance, Inc. (“Walgreens”), the Company and certain of their respective officers issued false and misleading statements and/or failed to disclose, among other things, the level of regulatory risk faced by the original and revised mergers pursuant to which Walgreens would acquire Rite Aid Corp. (“Rite Aid”) (the “Original Merger”). Walgreens and Rite Aid had entered into an agreement with Fred’s to sell 865 Rite Aid stores for $950 million in an all-cash transaction in order to complete the Original Merger (the “Fred’s Asset Purchase Agreement”).
On January 30, 2017, Rite Aid and Walgreens announced that they had entered into a new merger agreement (the “Revised Merger”). On June 29, 2017, Rite Aid and Walgreens announced that they had terminated the Revised Merger. Following the termination of the Revised Merger, Walgreens terminated the Fred’s Asset Purchase Agreement.
Defendants made materially false and misleading statements concerning the level of regulatory risk faced by the Original Merger and the Revised Merger which would ultimately cause the termination of the Fred’s Asset Purchase Agreement. Specifically, Defendants made false and/or misleading statements: (i) downplaying or disputing contrary reports from journalists signaling regulatory turbulence in closing the Original Merger, as well as, the Revised Merger; and (ii) representing that inside knowledge of the FTC gave confidence that the deal would close.
On this news, Fred’s stock price dropped $2.78 per share or over 22.8% from $12.20 per share to close at $9.41 per share on June 29, 2017. The Company’s stock price continued to fall over the following months, closing at $6.60 per share on September 27, 2017.
If you purchased Fred’s securities during the Class Period or continue to hold shares purchased before the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at email@example.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.