Alongside declining sales, the company has also faced more than 1,000 federal, state, and local lawsuits alleging its pharmacies improperly filled prescriptions for painkillers, according to the New York Times. In March 2023, the U.S. Department of Justice filed a complaint accusing Rite Aid of filling "unlawful prescriptions for controlled substances" that showed multiple red flags for misuse — allegations the company has denied. As part of its first bankruptcy reorganization, Rite Aid reached a settlement with the Justice Department in June 2024 resolving those allegations under the False Claims Act and Controlled Substances Act. Under the settlement, the company agreed to pay the government $7.5 million and have a general unsecured claim in Rite Aid's bankruptcy case, which are being handled through the court process. Rite Aid did not admit to any wrongdoing.