In 2023, Rite Aid Corporation, a retail drugstore chain, was hit with a securities class action lawsuit. The Rite Aid lawsuit claims the company made false and misleading statements to investors about its selling of illicit opioid prescriptions. This blog post will explain the basics of a securities class action lawsuit and how investors can get involved in such a Rite Aid lawsuit.
What is a Securities Class Action Lawsuit?
A securities class action lawsuit allows a group of investors to sue a company for making false or misleading statements that cause the investors to suffer financial losses. The investors usually sue on behalf of a larger group of investors similarly affected by the alleged fraud. In the case of Rite Aid, the investors who filed the lawsuit claimed that the company made false and misleading statements about how the company operated regarding prohibited opioid prescriptions.How Does a Securities Class Action Lawsuit Work?
Once the investors filed a securities class action lawsuit, the case goes through several stages. First, the court must certify the lawsuit as a class action, which means the investors can sue on behalf of all other investors similarly affected by the alleged fraud. The court will consider several factors when deciding whether to certify the lawsuit as a class action, including the number of investors affected, the commonality of the investors' claims, and the typicality of the named plaintiffs' claims.If the court certifies the lawsuit as a class action, the case will proceed to the discovery phase, in which both parties will collect proof to support their claims. This can involve depositions, document requests, and other types of discovery. The goal of discovery is to uncover evidence supporting or undermining the investors' claims.
How Can Investors Get Involved in a Securities Class Action Lawsuit?
If you believe that you have suffered financial losses due to a company's false or misleading statements, you may be able to participate in a securities class action lawsuit. To get involved, you should contact a securities class action lawyer who can evaluate your case and determine whether you meet the requirements to participate in the lawsuit.There are several ways that investors can find a securities class action lawyer. One way is to search online for law firms specializing in securities class action lawsuits. Another way is to contact a lawyer referral service to connect you with a qualified securities class action lawyer in your area.
In regards to the Rite Aid lawsuit, there are already law firms handling the class action suit. If you feel you qualify, contact them to see if you can get involved.
