Rite Aid and Mallinckrodt: A Tale of Two Bankruptcies

Rite Aid's stock experienced extreme volatility, surging over 20% in morning trading, then falling to near-session lows, and finally ending the day 8.23% higher. This comes after reports that the drug store chain may file for Chapter 11 bankruptcy, causing its shares to plummet 51% on Friday. Rite Aid is currently facing a $3.3 billion debt and a legal battle over alleged unlawful opioid prescriptions. Filing for bankruptcy would help restructure the company's debt, including any legal liabilities. Other pharmaceutical companies, including Purdue and Endo Pharmaceuticals, have also declared bankruptcy due to similar opioid lawsuits.