Rite Aid (RAD) Announces Settlement Related to Wage, Hour Suits; to Pay $20.9M

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Rite Aid Corporation (NYSE: RAD) and its subsidiaries and plaintiffs’ counsel in fifteen wage and hour collective and class action lawsuits announced today that they have reached a global settlement in these lawsuits which involve the alleged misclassification of Rite Aid’s salaried assistant store managers and co-managers and seek overtime pay for hours worked in excess of 40 hours per week. Plaintiffs contended that overtime pay was required by the Fair Labor Standards Act and the laws of certain states.

Under the terms of the global settlement, which is subject to court approval, the Company has agreed to pay up to $20.9 million to resolve the allegations and avoid further distraction from litigation that has been ongoing for the past four years. The settlement amount resolves claims for damages dating back as far as 2002 for some of the settlement class members and covers more than 6,000 current and former associates.

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