Kingboard Holdings Shares Surge After HK$11.77 Billion Block Trade to Expand PCB and AI Supply Chain Business 
Samsung Gains Interest from BYD, Google, AMD as AI Chip Demand Strains TSMC Capacity 
Novo Nordisk Raises 2026 Outlook on Strong Wegovy Demand 
US Appeals Court Keeps Trump’s 10% Global Tariff in Effect During Ongoing Legal Battle 
Trump Says Anthropic No Longer Seen as National Security Threat 
Qantas Nears Launch of World’s Longest Non-Stop Flights to London and New York 
G7 Explores AI Access Deal With U.S. Amid Anthropic Restrictions 
US Plans Kenya Ebola Quarantine Facility Amid Congo Outbreak 
Italy’s ITA Airways Weighs Legal Action Against Pratt & Whitney Over Grounded Airbus Fleet 
AstraZeneca Q1 2026 Earnings Surge on Strong Oncology and Rare Disease Drug Sales 
Hantavirus Cruise Ship Outbreak Triggers Global Health Alert 
Takeda Hit With $885M Verdict Over Amitiza Generic Drug Delay Scheme 
Carro Expands Into Australia With Acquisition of Used-Car Platform CarPlace 
Kennedy Center Ordered to Remove Trump Name Following Federal Court Ruling 
Judge Dismisses Trump Administration Lawsuit Against Boston Sanctuary City Policy 
Trump Administration Delays DeepSeek and CXMT Trade Blacklist Designations Amid U.S.-China Tensions 
Rite Aid has sued the U.S. Department of Justice (DOJ) to halt a lawsuit alleging the company's involvement in illegally filling prescriptions for addictive opioid medications. The lawsuit comes as Rite Aid finds itself in a bankruptcy situation.
Reuters reported that the DOJ's position threatens to impede the ongoing restructuring efforts by the company. In response, Rite Aid has requested the U.S. Bankruptcy Judge Michael Kaplan will rule that the DOJ lawsuit should not proceed while the company is under bankruptcy protection.
DOJ's Lawsuit Pause and Rite Aid's Request for Equal Treatment
The DOJ had initially filed the lawsuit against Rite Aid in March, and despite Rite Aid's bankruptcy filing, it agreed to a "brief pause" of the lawsuit, according to PennLive. However, Rite Aid argues that this stance undermines its restructuring efforts.
Rite Aid seeks to put the government on equal footing with other opioid-related plaintiffs whose lawsuits were automatically halted due to the company's bankruptcy filing. The DOJ maintains that its lawsuit is not affected by the bankruptcy filing as it exercises its "police powers" through legal action.
Rite Aid, which operates approximately 2,000 retail pharmacies across 17 U.S. states, filed for bankruptcy protection in October. It aims to close underperforming stores and address over 1,600 lawsuits surrounding allegations of over-selling addictive opioid medications by filling illegal or suspicious prescriptions. However, a court-appointed committee representing opioid plaintiffs has expressed concerns over potential non-payment to victims harmed by Rite Aid's alleged reckless sale of opioid drugs.
Rite Aid's Legal Battle Implications
As Rite Aid fights the DOJ's lawsuit, the outcome will have far-reaching implications. It will determine whether the company can proceed with its restructuring efforts unhampered by legal actions, and if the DOJ's exercise of "police powers" can continue despite Rite Aid's bankruptcy status.
Additionally, the opioid creditors and victims affected by the company's alleged actions will closely monitor the proceedings, hoping for equitable resolutions.
Attorney Arik Preiss, representing opioid creditors, raised concerns that Rite Aid's bankruptcy proceedings seem to prioritize its top lenders over other stakeholders, potentially putting them at odds with the DOJ.
Rite Aid's major competitors, including Walgreens, Walmart, and CVS, have already agreed to settle a series of similar opioid lawsuits outside of bankruptcy, amounting to $13.8 billion.
The DOJ's opposition to opioid settlements in the bankruptcies of Endo International and Purdue Pharma has complicated those cases as well, delaying proposed settlements and drawing appeals to higher courts.
Photo: Rite Aid Newsroom
