Pharmacy giant Rite Aid, which is facing an onslaught of lawsuits over its alleged role in the opioid epidemic, is planning to file for bankruptcy protection, according to a report.
The company’s multibillion-dollar debt load and pending legal allegations that it oversupplied prescription painkillers, will be covered under the Chapter 11 filing, The Wall Street Journal reported on Friday, citing people familiar with the matter.
Representatives for Rite Aid and the law firm reportedly handling the restructuring, Kirkland & Ellis LLP, did not immediately respond to FOX Business’ request for comment.
DOJ SUES RITE AID FOR ALLEGED INVOLVEMENT IN OPIOID CRISIS
Rite Aid, one of the nation’s largest pharmacy chains with more than 2,2000 locations, is facing numerous lawsuits for allegedly contributing to the opioid crisis that has taken a toll on communities around the nation.
DRUG DISTRIBUTOR CONTRIBUTED TO OPIOID CRISIS BY IGNORING SIGNS OF ABUSE, FEDS SAY
The Department of Justice filed a lawsuit against Rite Aid earlier this year claiming the company knowingly filled “unlawful prescriptions for controlled substances” in violation of the False Claims Act and Controlled Substances Act.
Rite Aid has denied allegations that it filled unlawful prescriptions, the Journal reported. A bankruptcy filing would also halt these suits for the time being and provide the company another pathway to resolve them, according to the newspaper.
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