More Trouble For Rite Aid?

Fri., Feb. 18, 2000

From Staff

Rite Aid’s shares dropped 4 percent Thursday following a report the company was being investigated for criminal fraud in connection with its past accounting practices.

Citing anonymous sources, The Wall Street Journal said that Frank Bergonzi, Rite Aid’s former chief financial officer, had received a subpoena from the U.S. attorney’s office in Harrisburg to produce documents relating to the investigation.

Shares of Rite Aid, which have been pummeled by investors over worries regarding the company’s accounting procedures, fell even further Thursday. Shares fell 12 cents to $6.81 in late trading on the New York Stock Exchange.

The nation’s third-largest pharmacy chain, based in Camp Hill, Pa., would not comment on whether or not the U.S. attorney’s office is investigating it, but noted it is cooperating with an ongoing investigation by the Securities and Exchange Commission over similar issues.

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More Trouble For Rite Aid?

Jesse Tinsley

Jim Meehan

Molly Quinn

Rob Curley

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