Rite Aid is preparing to file for Chapter 11 bankruptcy this fall as it faces numerous lawsuits over its alleged role in the opioid epidemic, people familiar with the matter told The Wall Street Journal.
A Chapter 11 bankruptcy filing could alleviate the pharmacy chain's $3.3 billion debt and legal costs for ongoing opioid lawsuits from private plaintiffs, states and the federal government, according to the Aug. 25 report. Chapter 11 bankruptcies are commonly used to reorganize a company's structure to continue its business while paying creditors, such as plaintiffs, over time.
Rite Aid did not respond to the news outlet's request for comment.
A few other companies already have filed for Chapter 11 bankruptcy to resolve billions of dollars in opioid lawsuit costs, including Purdue Pharma, Mallinckrodt and Endo International.