Rite Aid 2012 Annual Report Download - page 110

RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended March 3, 2012, February 26, 2011 and February 27, 2010
(In thousands, except per share amounts)
16. Commitments, Contingencies and Guarantees (Continued)
joined the Craig action. The Company has filed a motion to decertify the class which is presently
pending. 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, the Court, on April 2, 2010, conditionally certified a nationwide collective group of
individuals who worked for the Company 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
(approximately 7,000 current and former store managers) and approximately 1,550 joined the Indergit
action. In another of the cases, Ibea v. Rite Aid Corporation et al, pending in the United States District
Court for the Southern District of New York, brought on behalf of former salaried co-managers, the
Court, on January 9, 2012, conditionally certified a collective group of individuals who worked for the
Company as salaried co-managers. The Court ordered that Notice of the Ibea action be sent to the
purported members of the collective group (approximately 650 former salaried co-managers) and
approximately 140 joined the Ibea action. At this time, the Company is not able to predict the outcome
of these lawsuits, or any possible monetary exposure associated with the lawsuits. The Company’s
management believes, however, that the lawsuits are without merit and not appropriate for collective or
class action treatment. The Company is vigorously defending all of these claims.
The Company is currently a defendant in several putative class action lawsuits filed in state courts
in California alleging violations of California wage and hour laws, rules and regulations pertaining
primarily to pay for missed meals and rest periods and failure to provide employee seating. These suits
purport to be class actions and seek substantial damages. At this time, the Company is not able to
predict the outcome of these lawsuits, or any possible monetary exposure associated with the lawsuits.
The Company’s management believes, however, that the plaintiffs’ allegations are without merit and
that their claims are not appropriate for class action treatment. The Company is vigorously defending
all of these claims.
The Company was served with a United States Department of Health and Human Services Office
of the Inspector General (‘‘OIG’’) subpoena dated March 5, 2010 in connection with an investigation
being conducted by the OIG, the United States Attorney’s Office for the Central District of California
and the United States Department of Justice Commercial Litigation Branch. The subpoena requests
records related to any gift card or similar programs for customers who transferred prescriptions for
drugs or medicines to the Company’s pharmacies, and whether any customers who receive federally
funded prescription benefits (e.g. Medicare and Medicaid) may have benefited from those programs.
The Company is in the process of completing its production of records in response to the subpoena
and is unable to predict with certainty the timing or outcome of any review by the government of such
information.
The Company received a subpoena dated May 9, 2011 from certain California counties seeking
information regarding compliance with environmental regulations governing the management of
hazardous waste. The Company is completing its production of records in response to the subpoena.
The Company is unable to predict with certainty the timing or outcome of any review by the
government of such information.
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