Rite Aid 2016 Annual Report Download - page 33

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accrual during the period ended March 1, 2014, which was revised during the period ending August 29,
2015. However, Rite Aid cannot predict at this time whether an agreement can be reached and the
terms of any agreement.
The Company was served with a Civil Investigative Demand (‘‘CID’’) dated June 21, 2013 by the
USAO for the Eastern District of California and the Attorney General’s Office of the State of
California (the ‘‘AG’’). The CID requested records and responses to interrogatories regarding Rite
Aid’s Drug Utilization Review and prescription dispensing protocol and the dispensing of drugs
designated ‘‘Code 1’’ by the State of California. The Company produced responsive documents and
interrogatory responses to the USAO and AG. The Company and the government are in the process of
evaluating the government’s allegations and documents produced and have been exchanging position
letters concerning the merits of the government’s claims. At this stage, Rite Aid is unable to predict the
outcome of the investigation.
In addition to the above described matters, the Company is subject from time to time to various
claims and lawsuits and governmental investigations arising in the ordinary course of business. While
the Company’s management cannot predict the outcome of any of the claims, the Company’s
management does not believe that the outcome of any of these legal matters will be material to the
Company’s consolidated financial position. It is possible, however, that the Company’s results of
operations or cash flows could be materially affected by an unfavorable resolution of pending litigation
or contingencies.
Item 4. Mine Safety Disclosures
Not applicable
33