Rite Aid and Assistant Store Managers and Co-Managers Reach Settlement in Wage and Hour Class Action Lawsuits
CAMP HILL, Pa.--(BUSINESS WIRE)-- Rite Aid Corporation (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 Aids 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.
Both plaintiffs and Rite Aid believe that the proposed settlement represents a fair, reasonable and adequate resolution of cases challenging Rite Aids classification of its assistant managers and co-managers as exempt. According to Seth Lesser, lead plaintiffs counsel, This is an excellent result for the present and former Rite Aid assistant managers and co-managers who will benefit from it because the settlement will provide a definite and sure recovery long before any possible payment could be achieved through continued litigation. The settlement, if approved, will avoid the possibility of adverse rulings or even no recovery at all.
Rite Aid believes that its previous classification of assistant managers and co-managers as exempt employees is fully compliant with applicable state and federal law. Rite Aid denies any wrongdoing in the global settlement.
The settlement has been presented to the U.S. District Court for the Middle District of Pennsylvania and preliminarily approved. Official forms will soon be mailed to settlement class members.
Rite Aid Corporation is one of the nations leading drugstore chains with approximately 4,700 stores in 31 states and the District of Columbia and fiscal 2012 annual revenues of $26.1 billion. Information about Rite Aid, including corporate background and press releases, is available through the companys website at http://www.riteaid.com.
RITE AID MEDIA:
Susan Henderson, 717-730-7766
RITE AID INVESTORS:
Matt Schroeder, 717-214-8867
Seth Lesser, 914-934-9200
Source: Rite Aid CorporationCopyright Business Wire 2012