Rite Aid files for bankruptcy faced with high debt, opioid lawsuits

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Debt-laden Rite Aid (RAD.N), a chain of American pharmacies, announced late on Sunday that it had filed for bankruptcy protection 

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and that it would liquidate underperforming locations, sell its pharmacy benefit firm Elixir,

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and settle legal claims related to the selling of addictive opioid prescriptions.

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According to court documents, Rite Aid, one of the biggest pharmaceutical merchants in the United States, 

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 struggled with high debt, declining income, more competition, and opioid litigation.

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Rite Aid, which was founded in 1962 and has 45,000 employees across 2,000 retail locations in 17 states, will continue to operate as usual throughout the bankruptcy. 

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In fiscal year 2023, the business generated $24 billion in sales and filled 200 million prescriptions.

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Additionally, it lost $750 million for the fiscal year 2023 while dealing with increasing legal expenses.

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Rite Aid is facing 1,600 additional drug lawsuits from state and municipal governments, hospitals, and people.

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 The U.S. government has accused Rite Aid of ignoring "red flags" when writing prescriptions for illegal opiates.

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Rite Aid, which has denied wrongdoing, said it hopes to reach an "equitable" settlement of opioid litigation in bankruptcy.

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