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BRIEFLY / PHARMACEUTICALS

Appeals Panel Clears Rite Aid of Fraud Charges

November 11, 2000|Bloomberg News

Rite Aid Corp. isn't required by law to disclose that it charged uninsured customers more for prescription drugs than those with insurance, a federal appeals panel ruled. Several people without prescription drug insurance sued Rite Aid in federal court in Alabama last year, contending that the drugstore operator violated a U.S. racketeering statute by selling medicines to insured patients at lower prices, and not disclosing that policy. A U.S. District Court judge dismissed the complaint, saying Rite Aid's failure to disclose the policy was not fraudulent. An opinion released by a three-judge U.S. 11th Circuit Court of Appeals panel in Atlanta affirmed that decision. Shares of Camp Hill, Pa.-based Rite Aid fell 6 cents to close at $2.88 on the NYSE.

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