Rite Aid Prevails In Insider Trading Suit

Law360, New York (September 18, 2007, 12:00 AM EDT) -- A judge has tossed out a lawsuit accusing Rite Aid Corp. of profiting from insider trading, ruling the drugstore chain is immune under laws banning so-called short swing sales of registered stock.

In granting the pharmacy company summary judgment in the case, Manhattan District Court Judge Kimba Wood said Friday Rite Aid's trade of its equity in health management services company AdvancePCS did not violate securities laws.

The judge dismissed arguments by AdvancePCS shareholder Elliott Scheier that Rite Aid had engaged in short-swing insider trading when...
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