Tropical storm Idalia places Florida on alert for major hurricane
Rite Aid shares ended Monday’s session higher after a highly volatile day.
Stock prices for Rite Aid fluctuated sharply throughout the trading day, soaring more than 20% higher in morning trading and then falling to near-session lows by midday. During the afternoon, the stock surged again and finished the day up 8.23%.
Rite Aid’s shares fell Friday amid reports that it was preparing to file bankruptcy, causing the steep swings.
A new all-time low of $0.71 a share was set by the Philadelphia-based chain on Friday. Since this time last year, Rite Aid shares are down more than 91%.
According to The Wall Street Journal and Bloomberg, Rite Aid is preparing to file for Chapter 11 bankruptcy. There is about $3.3 billion in debt for Rite Aid, which has been embroiled in a legal battle for allegedly filling illegal opioid prescriptions.
In March, the Department of Justice filed suit against the company, alleging that it processed “illegal prescriptions for controlled substances.” This violates both the False Claims Act and the Controlled Substances Act.
A bankruptcy filing would restructure Rite Aid’s debt, including any legal obligations.
With more than 2,200 stores in 17 states, Rite Aid is the seventh largest pharmacy chain in the country.
Following similar opioid lawsuits, Purdue, Endo Pharmaceuticals, and Mallinckrodt have also declared bankruptcy.
According to the Department of Health and Human Services, more than 760,000 people have died from drug overdoses since 1999. In 2020, opioids were involved in about 75% of drug overdose deaths. With her five children, Yadira Alvarez, 34, told Reuters news agency that two days of rain had already passed. “We’re trying to prepare, but no matter what we do, everything will be soaked,” Mr DeSantis said. Idalia will force several counties to evacuate, and schools will also close.
In low-lying coastal areas of Florida, he encouraged residents to seek higher ground.
‘Floridians, you need to execute your plans now,’ he said.
In addition to 2,400 high-water vehicles and other rescue equipment, more than 1,100 National Guardsmen were mobilized.
400,000 gallons of fuel have been prepared to be deployed at petrol stations along evacuation routes, Mr DeSantis said.
In addition, state officials warned that many residents in the area would be without power during the storm.
Georgia, North Carolina, and South Carolina could also see heavy rainfall, forecasters said.
Over 100 people were killed by Hurricane Ian, which made landfall on Florida’s west coast less than a year ago.
There is still uncertainty about how climate change will affect the frequency of tropical storms, but increased sea surface temperatures warm the air above and make hurricanes more powerful. Therefore, they are likely to be more intense with more extreme rainfall.
Some north-western Florida towns will experience storm surges of up to 11ft (3.3m)