NEW YORK, NY / ACCESSWIRE / August 17, 2019 / Pomerantz LLP is investigating claims on behalf of investors of Fred’s, Inc. (“Fred’s” or the “Company”) (FRED). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Fred’s and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On October 27, 2015, Rite Aid Corp. (“Rite Aid”) and Walgreens Boots Alliance, Inc. (“Walgreens”) jointly announced an Agreement and Plan of Merger pursuant to which Walgreens would acquire Rite Aid for $9.00 per share in cash. To convince the investing public that it would receive Federal Trade Commission approval to complete the merger, Walgreens and Rite Aid entered into an agreement with Fred’s to sell 865 Rite Aid stores for $950 million in an all-cash transaction (the “Fred’s Asset Purchase Agreement”).
On January 30, 2017, Rite Aid and Walgreens announced that they had entered into a new merger agreement, which cut the proposed consideration for Rite Aid stockholders from $9.00 per share to between $6.50 to $7.00 per share (the “Revised Merger”).
On June 29, 2017, Rite Aid and Walgreens announced that they had terminated the Revised Merger. Following the Revised Merger’s termination, Walgreens then terminated the Fred’s Asset Purchase Agreement. Following this news, Fred’s stock price fell $2.78 per share, or roughly 22.8%, to close at $9.41 per share on June 29, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP
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