Rite Aid investors were not happy with how Walgreens handled a potential merger with the Philadelphia-based retailer, and Rite Aid will now receive a $192.5 million court settlement, reports Reuters.
In 2015, Walgreens attempted to buy out Rite Aid, in what would have been a $17.2 billion deal. The deal fell through at the time — Walgreens canceled the merger in June 2017 after the Federal Trade Commission refused to approve it, and as a Plan B bought about 42% of Rite Aid’s store network for $4.38 billion.
The recent lawsuit accuses Walgreens Boots Alliance of downplaying scrutiny from antitrust regulators starting in October 2016. More specifically, the investors sued Walgreens over misleading statements that were made about the merger.
The settlement still needs to be approved by a federal judge in Pennsylvania.
Walgreens refused to comment on the settlement.
Rite Aid has filed for Chapter 11 bankruptcy and announced last week it will close 154 locations. The Chapter 11 filing allows the Philadelphia-based retailer to restructure its debt, which sits at $3.3 billion. Lenders have agreed to provide $3.45 billion in debt relief.
