Fred’s, Inc.
| Company Name | Fred’s, Inc. |
| Stock Symbol | FRED |
| Class Period | December 20, 2016 to June 28, 2017 |
| Lead Plaintiff Motion Deadline | August 27, 2019 |
In December 2016, Fred’s agreed to purchase 865 stores from Rite Aid Corp. for $950 million to help obtain approval by the Federal Trade Commission (“FTC”) of Rite Aid’s merger with Walgreens Boots Alliance, Inc. (“Walgreens”).
Then, on June 29, 2017, Rite Aid and Walgreens terminated their merger agreement along with Fred’s asset purchase agreement.
On this news, the Company’s share price fell $2.78, or more than 22%, to close at $9.41 on June 29, 2017, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made statements: (1) downplaying or disputing contrary reports from journalists signaling regulatory turbulence in closing the merger; and (2) representing that inside knowledge of the FTC gave confidence that the deal would close.
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