Rite Aid (NYSE:RAD) stock is falling on Monday following reports that the pharmaceutical company is preparing to file for bankruptcy.
According to these reports, Rite Aid is getting ready to file for bankruptcy in the near future. The reports state that this filing is the result of mounting lawsuits against the company over its alleged role in the U.S. opioid crisis.
Rite Aid is refusing to comment on the bankruptcy reports. However, the company has been closing stores over the last couple of years. If this bankruptcy filing occurs, it could result in another 400 locations around the U.S. shutting down.
Investors will also note that Rite Aid warned about the possible dangers of the opioid lawsuits in a May filing. Here’s what it said at that time, according to Yahoo Finance:
“Although we believe we have adequate sources of liquidity to meet our anticipated requirements for working capital, debt service and capital expenditures through at least the next twelve months, the costs associated with these legal proceedings are impossible to estimate with certainty, could exceed any applicable insurance coverage, and could significantly impact such liquidity.”
RAD Stock Movement
Following the bankruptcy reports, some 898,000 shares of RAD stock have changed hands this morning. That’s still a ways off from its daily average trading volume of about 5 million shares. However, the stock saw some 39 million shares traded on Friday when the bankruptcy reports were first released.
RAD stock is down slightly on Monday after a 51% fall on Friday.
Investors looking for more of the most recent stock market news will want to keep reading!
We’ve got all of the biggest stock market stories for Monday! A few examples include why shares of LQR House (NASDAQ:LQR) and Vahanna Tech Edge Acquisition I (NASDAQ:VHNA) stock are up, as well as the biggest pre-market stock movers this morning. All of that news is available at the following links!
More Monday Stock Market News
- Why Is LQR House (LQR) Stock Up 36% Today?
- Why Is Vahanna Tech Edge Acquisition I (VHNA) Stock Up 25% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
