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Paul, Weiss won an important victory for New Rite Aid LLC in a contract dispute against CVS Pharmacy, Inc., which is acquiring pharmacy assets and prescription files from over 600 Rite Aid stores in connection with Rite Aid’s bankruptcy case. 

CVS threatened to pay Rite Aid approximately $50 million less than was owed under the parties’ asset purchase agreements based on CVS's interpretation of a contract provision. The provision calculates the number of prescriptions filled at Rite Aid stores during a lookback period prior to the stores’ closure, which in turn determines whether CVS is entitled to a purchase price adjustment and, if so, what that adjustment should be.

After expedited briefing and discovery, and a one-day evidentiary hearing on July 25, Judge Michael Kaplan of the U.S. Bankruptcy Court for the District of New Jersey rejected all of CVS’s arguments and ruled in Rite Aid's favor.

The Paul, Weiss team included litigation partners Alison Benedon, William Clareman and Gregory Laufer and counsel Darren Johnson; restructuring partners Alice Eaton, Christopher Hopkins, Sean Mitchell and Andrew Rosenberg; and corporate partner Megan Spelman.