The perceived value of ERSI's order with this customer may be twisting in the wind.
Wednesday November 10 5:40 AM ET
Rite Aid Contacted by SEC Enforcers - WSJ
NEW YORK (Reuters) - The enforcement arm of the Securities and Exchange Commission recently contacted Rite Aid Corp (NYSE:RAD - news). and at least one company that has had dealings with the chain, the Wall Street Journal reported Wednesday.
The SEC scrutiny comes after Rite Aid said in October it would restate downward by about $500 million its earnings for the last three fiscal years, wiping out half its reported pre-tax earnings for the period, the Journal noted.
Karen Rugen, a spokeswoman for the No. 3 drug retailer, was quoted as confirming the company had been contacted by the agency's enforcement division, but declined to give specifics.
She said Rite Aid wasn't aware of a formal investigation, but ''given the size of the restatement, approximately $500 million, one could be anticipated,'' according to the Journal.
Creditek, a company that has helped suppliers Rite Aid manage billings to the drugstore chain, was also contacted by the agency's enforcement arm, the Journal said.
A spokeswoman for Bic Corp., a supplier of pens and other products to Rite Aid, said her company was recently contacted by the SEC about Rite Aid, but wouldn't specify which division of the agency, the Journal said. Another division of the SEC, which oversees corporate filings, has been reviewing for nearly a year and a half a Rite Aid registration statement covering the sale of securities, Rite Aid told the Journal. |
