Longs to settle CVS-related suits

WALNUT CREEK, Calif. Longs Drug Stores announced on Wednesday that it has agreed to settle class action lawsuits related to the pending acquisition by CVS Caremark.

Under the terms of the proposed settlement, Longs has agreed to provide additional disclosures in its solicitation/recommendation statement. Finalization of the proposed settlement remains subject to several conditions, including court approval.

As previously reported, the regulatory waiting period under the Hart-Scott-Rodino Antitrust Improvement Act has expired, satisfying a condition to the closing of the deal. The waiting period expired Sept. 5.

Under the planned acquisition, CVS Caremark will buy for $2.9 billion, including debt, Longs Drug Stores’ 521 retail locations in California, Hawaii, Nevada and Arizona, as well as its PBM services.

Longs owns the real estate associated with approximately 200 store locations, three distribution centers and three office facilities. CVS Caremark has “conservatively” valued the store locations alone at more than $1 billion.