Rite Aid plans to file for bankruptcy, reports indicate
Drug store chain Rite Aid is preparing to file for Chapter 11 bankruptcy, according to the Wall Street Journal.
The Chapter 11 protection would cover the chain’s more than $3.3 billion debt load and pending legal allegations involving its alleged role in the sale of opioids.
In March, the Department of Justice filed suit against Rite Aid, accusing its of missing “obvious red flags,” in filling hundreds of thousands of prescriptions for controlled substances. The suit alleges Rite Aid violated the federal False Claims Act and Controlled Substance Act by submitting false prescription claims and knowingly filling unlawful prescriptions, The Hill reported.
Rite Aid operates more than 2,330 stores in 17 states, including Alabama.