Longs settles acquisition-related suit

WALNUT CREEK, Calif. Longs Drug Stores announced that Longs and CVS Caremark have agreed in principle with the shareholder plaintiffs to settle purported class action lawsuits filed in California relating to CVS Caremark's pending tender offer for all of the outstanding shares of common stock of Longs.

Under the terms of the proposed settlement, the claims of the named plaintiffs and the proposed class of public shareholders relating to the tender offer and the related merger agreement and the transactions contemplated thereby will be dismissed on behalf of the settlement class. Finalization of the proposed settlement remains subject to several conditions, including court approval and completion of the tender offer and the other transactions contemplated by the merger agreement in accordance with its terms. In connection with the proposed settlement, Longs has agreed to provide additional disclosures in Longs' solicitation/recommendation statement on Schedule 14D-9.

Last month, CVS said it’s agreed to buy Longs Drug Stores in a deal valued at $2.9 billion. CVS said the acquisition will give it a larger foothold on the West Coast where nearly all of Longs’ stores are located.