Rite Aid, a major U.S. pharmacy chain, is reportedly contemplating a Chapter 11 bankruptcy filing in light of numerous opioid lawsuits. The company’s stock plummeted over 50% following the bankruptcy reports by The Wall Street Journal and Bloomberg.
This legal move would enable Rite Aid to restructure its hefty $3 billion debt and address allegations of the unlawful dispensation of massive quantities of opioid prescriptions. The lawsuits claim Rite Aid contributed to the opioid crisis by intentionally filling painkiller prescriptions that did not satisfy legal standards.
Despite the looming legal challenges, Rite Aid customers are unlikely to experience any disruptions. The Chapter 11 proceedings are typically inconspicuous to customers, aiming to sustain business operations and maximize the payout to claimants. Experts suggest that, even in the event of a bankruptcy filing, the company has a strong incentive to maintain its standard of service to its clientele. With over 2,000 pharmacy locations in 17 states, Rite Aid remains a prominent player in the national pharmacy scene.
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