NEW YORK, Aug. 23, 2019 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Fred's Inc. (“Fred’s” or the “Company”) (NASDAQ: FRED) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Fred’s securities purchased between December 20, 2016 and June 28, 2017, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/fred.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws.
The complaint alleges that Walgreens Boots Alliance, Inc. ("Walgreens"), Fred’s and some of their respective officers delivered false and misleading statements and/or failed to disclose the 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 merger agreement with Fred's and would sell 865 Rite Aid stores for $950 million in cash to complete the Original Merger (the "Fred's Asset Purchase Agreement"). Then on January 30, 2017, Rite Aid and Walgreens revealed that they had entered into a new merger agreement (the "Revised Merger"). On June 29, 2017, Rite Aid and Walgreens publicized that they had terminated the Revised Merger. Following the Revised Merger termination, Walgreens then terminated the Fred's Asset Purchase Agreement.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) downplaying or disputing contrary reports from journalists signaling regulatory turbulence in closing the Original Merger, as well as, the Revised Merger; and (2) representing that inside knowledge of the FTC gave confidence that the deal would close.
Following this news, Fred's stock dropped $2.78 per share or over 22.8% to close at $9.41 on June 29, 2017. The stock continued to drop over the next few months and closed at $6.60 on September 27, 2017.
If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/fred or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Fred's Inc. you have until August 27, 2019 to request that the Court appoint you as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | email@example.com