Rite Aid Ch. 11 Stay Doesn’t Apply To Execs, Investors Say

Rite Aid shareholders urged a Pennsylvania federal court this week to not pause their class claims alleging company executives made misleading statements about the pharmacy retailer’s opioid-related liabilities, asserting that the individuals named in the lawsuit are not covered by an automatic stay in the firm’s ongoing Chapter 11 case.

In a memorandum filed Tuesday, the proposed class of investors argued that Ride Aid Corp. should not be granted a stay on the securities action in Pennsylvania district court until after the company receives confirmation on its insolvency plan.

The debtors are represented by Michael D. Sirota, Warren A. Usatine, Felice R. Yudkin and Seth Van Aalten

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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