WBA - Judge Rules Against MedImpact In $200M Rite Aid Debt Dispute | Benzinga
MedImpact’s attempt to recoup approximately $200 million following its purchase of Rite Aid Corp’s (OTC:RADCQ) pharmacy benefits unit has failed.
U.S. Bankruptcy Judge Michael Kaplan ruled that MedImpact assumed Elixir’s debts when it acquired the company.
In a hearing, Judge Kaplan highlighted that MedImpact was aware of Elixir’s negative cash balance, which stood at around $200 million.
This deficit was mainly due to reimbursement payments owed to pharmacies, including CVS Health Inc (NYSE:CVS) and Walgreens Boots Alliance Inc (NASDAQ:WBA).
Previously, Kaplan had approved MedImpact’s $575 million acquisition of Elixir, confirming that the sale agreement included the transfer of Elixir’s debts ...