Rite Aid Files for Bankruptcy, Painting a Sad Future for Neighborhood Pharmacies

According to a press release from the United States Attorney’s Office, “from May 2014 through June 2019, Rite Aid knowingly filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice.”

These unlawful prescriptions included, “dangerous and highly abused combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as oxycodone and fentanyl.”

The press release also states that despite “red flags”, Rite Aid pharmacists filled these prescriptions.

Rite Aid had called these claims “hyperbolic” in a subsequent motion to dismiss.

More Drugstores on the Decline

Rite Aid, the third largest drugstore chain isn’t the only chain seeing a decline. CVS, the current largest U.S. chain, and Walgreens, the second largest, are also seeing slowing sales and store closures across the country.

This could be bad news for neighborhood pharmacies as bigger chains such as Target and Walmart are taking over the space, and more and more people are getting their medications delivered right to their door.

CVS and Walgreens have also paid similar lawsuit settlements to that of Rite Aid and deal with the same issues of big box chains and grocery stores taking over.

What’s Next for Rite Aid?

Rite Aid’s bankruptcy protection plan will help lower the company’s debt and resolve lawsuits in a timely manner. Customers will still be able to go to Rite Aid locations and shop online through the bankruptcy process.