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
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