Rite Aid Files For Bankruptcy

Rite Aid said it will 'significantly reduce the company's debt' while helping to 'resolve litigation claims in an equitable manner'.

A major U.S. pharmacy chain filed for bankruptcy.

Last year, Rite Aid settled for up to $30 million to resolve lawsuits alleging pharmacies contributed to an oversupply of prescription opioids. It appeared to reach an agreement with its creditors on a financial restructuring plan to cut its debt and position itself for future growth. By filing for Chapter 11, the company obtained $3.45 billion in fresh financing as it carries out the restructuring plan.

Rite Aid said it will ‘significantly reduce the company’s debt’ while helping to ‘resolve litigation claims in an equitable manner’. These actions come after the Justice Department accused the company of knowingly filling thousands of illegal prescriptions for controlled substances from May 2014-June 2019. It also accused pharmacists and rite aid of ignoring ‘red flags’ indicating the prescriptions were unlawful.