Breaking: Rite Aid Prepares for Bankruptcy Filing

by Mindy Cohn

Rite Aid shares dropped by 53% today after the Wall Street Journal reported that the chain plans to file for bankruptcy next month. 

Trading was briefly halted due to volatility, with further losses after trading resumed, dropping the stock to 94 cents this afternoon.

The drugstore chain is allegedly filing for Chapter 11 to cover its more than $3.3 billion debt and pending lawsuit Rite Aid is facing together with other pharmacy chains due to legal allegations that it oversupplied prescription painkillers, which helped fuel the opioid crisis in the U.S., according to the Wall Street Journal report earlier today.

In March, the U.S. Department of Justice sued Rite Aid for missing "red flags" and illegally filling hundreds of thousands of controlled substance prescriptions.