Lifshitz & Miller LLP Files Class Action Lawsuit on behalf of Fred's Inc. Investors

NEW YORK, June 28, 2019 /PRNewswire/ -- Lifshitz & Miller, announces that on June 27, 2019, it filed a securities class action lawsuit on behalf of its client who purchased shares of Fred's Inc. (FRED) ("Fred's" or the "Company") between December 20, 2016 and June 28, 2017 (the "Class Period").  The lawsuit was filed in the United States District Court for the Western District of Tennessee and alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

A copy of the complaint is available from the Court or from Lifshitz & Miller.  If you are a Fred's investor, and would like additional information about our investigation and complaint, please complete the Information Request Form or contact Joshua Lifshitz, Esq. by telephone at (516) 493-9780 or e-mail at [email protected].

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.

The complaint alleges that Walgreens Boots Alliance, Inc. ("Walgreens"), the Company and certain of their respective officers issued false and misleading statements and/or failed to disclose, among other things, the level of regulatory 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 an agreement with Fred's to sell 865 Rite Aid stores for $950 million in an all-cash transaction in order to complete the Original Merger (the "Fred's Asset Purchase Agreement"). On January 30, 2017, Rite Aid and Walgreens announced that they had entered into a new merger agreement (the "Revised Merger").  On June 29, 2017, Rite Aid and Walgreens announced that they had terminated the Revised Merger.  Following the termination of the Revised Merger, Walgreens terminated the Fred's Asset Purchase Agreement.

Defendants made materially false and misleading statements concerning the level of regulatory risk faced by the Original Merger and the Revised Merger which would ultimately cause the termination of the Fred's Asset Purchase Agreement. Specifically, Defendants made false and/or misleading statements: (i) downplaying or disputing contrary reports from journalists signaling regulatory turbulence in closing the Original Merger, as well as, the Revised Merger; and (ii) representing that inside knowledge of the FTC gave confidence that the deal would close.

On this news, Fred's stock price dropped $2.78 per share or over 22.8% from $12.20 per share to close at $9.41 per share on June 29, 2017. The Company's stock price continued to fall over the following months, closing at $6.60 per share on September 27, 2017.

Investors have until August 27, 2019 to file a motion, with the court, for appointment as a lead plaintiff in this lawsuit.

Lifshitz & Miller has extensive experience representing investors in the prosecution of securities class actions and shareholder derivative litigation in state and federal courts across the country.

ATTORNEY ADVERTISING. © 2019 Lifshitz & Miller LLP.  The law firm responsible for this advertisement is Lifshitz & Miller LLP, 821 Franklin Avenue, Suite 209, Garden City, New York 11530, Tel: (516) 493-9780.  Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contact:

Joshua M. Lifshitz, Esq.
Lifshitz & Miller LLP
Phone:  516-493-9780
Facsimile: 516-280-7376
Email: [email protected]

SOURCE Lifshitz & Miller

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