Rite Aid’s stock drops more than 50% on report of pending Chapter 11 bankruptcy

Rite Aid Corp. shares
RAD,
-51.04%
dropped Friday following a report that the drugstore chain was filing for Chapter 11 bankruptcy protection because of opioid lawsuits. Shares dropped more than 50% to an intraday low of 66 cents a share after the Wall Street Journal reported the company was filing to cover more than $3.3 billion in debt amid lawsuits that allege the drugstore chain overprescribed opioid painkillers, citing people described as familiar with plans. Rite Aid shares are down 78% to date in 2023, compared with a 14% gain in the S&P 500 index
SPX,
+0.67%.
Back in June, shares came under pressure amid reports that the company was looking to restructure $2.9 billion in debt.