Rite Aid 2010 Annual Report Download - page 22

Item 3. Legal Proceedings
We are currently a defendant in several putative collective or class action lawsuits filed in federal
or state courts in Pennsylvania, New Jersey, New York, Maryland, Ohio and Oregon, purportedly on
behalf of, in some cases (i) current and former assistant store managers, or (ii) current and former
store managers and assistant store managers, respectively, working in our stores at various locations.
The lawsuits allege violations of the Fair Labor Standards Act and of certain state wage and hour
statutes. The lawsuits seek various combinations of unpaid compensation (including overtime
compensation), liquidated damages, exemplary damages, pre- and post-judgment interest as well as
attorneys’ fees and costs. In one of the cases, Craig et al v. Rite Aid Corporation et al, pending in the
United States District Court for the Middle District of Pennsylvania, brought on behalf of current and
former assistant store managers, the Court, on December 9, 2009, conditionally certified a nationwide
collective group of individuals who worked for us as assistant store managers since December 9, 2006.
Notice of the Craig action has been sent to the purported members of the collective group. The
number of persons who will opt into the Craig action has not been determined. In another of the cases,
Indergit v. Rite Aid Corporation et al, pending in the United States District Court for the Southern
District of New York, brought on behalf of current and former store managers and assistant store
managers, the Court, on April 2, 2010, conditionally certified a nationwide collective group of
individuals who worked for us as store managers since March 31, 2007. The Court ordered that Notice
of the Indergit action be sent to the purported members of the collective group. Neither the actual
date on which the Notice will be sent nor the number of persons who will opt into the Indergit action
has been determined. At this time, we are not able to predict the outcome of these lawsuits, or any
possible monetary exposure associated with the lawsuits. We believe, however, that the lawsuits are
without merit and not appropriate for collective or class action treatment. We are vigorously defending
all of these claims.
We are currently a defendant in several putative class action lawsuits filed in state courts in
California alleging violations by us of California wage and hour laws pertaining primarily to pay for
missed meals and rest periods. These suits purport to be class actions and seek substantial damages. At
this time, we are not able to predict the outcome of these lawsuits, or any possible monetary exposure
associated with the lawsuits. We believe, however, that the plaintiffs’ allegations are without merit and
that their claims are not appropriate for class action treatment. We are vigorously defending all of
these claims.
We do not believe that any of these matters will have a material adverse effect on our business or
financial condition. We cannot give assurance, however, that an unfavorable outcome in one or more of
these matters will not have a material adverse effect on our results of operations for the period in
which they are resolved.
We are subject from time to time to various claims and lawsuits and governmental investigations,
inspections, audits, inquiries and similar actions arising in, and incidental to, the ordinary course of our
business. While we cannot predict the outcome of these claims with certainty, we do not believe that
the outcome of any of these legal matters will have a material adverse effect on our consolidated
results of operations, financial position or cash flows.
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