Rite Aid sued for nearly $7 million over unpaid ads for flu and COVID shots
The lawsuit, over a deal made while the Philly-based chain was in bankruptcy, is the company’s latest blow.
While in bankruptcy, Rite Aid signed on for a $10.3 million digital advertising campaign, encouraging customers to get their flu and COVID shots at the pharmacy. A year later, the beleaguered Philly-based chain has emerged from bankruptcy but still owes $6.8 million to the company that placed the vaccine ads, according to a new lawsuit.
The New York-based company Evergreen Trading filed the suit Friday in the U.S. District Court in Philadelphia, saying in documents that it upheld its end of the agreement by placing TV ads for Rite Aid in markets from Baltimore to Seattle.
Rite Aid, meanwhile, “breached its contractual obligations,” wrote Evergreen’s attorneys at Duane Morris, and didn’t respond to repeated requests for payment. As recently as last month, the company sent letters to Rite Aid that went unanswered, according to court documents. Evergreen is asking that Rite Aid be ordered to pay the outstanding $6.8 million, plus interest and court fees.
A Rite Aid spokesperson did not immediately respond to a request for comment.
The lawsuit marks the latest blow for Rite Aid, which in 2022 moved its home base from the Harrisburg suburb of Camp Hill to a “remote” headquarters at Philly’s Navy Yard. In recent years, the pharmacy chain has closed more than 1,100 stores nationwide, including more than 70 in the Philadelphia region.
Rite Aid filed for bankruptcy in October 2023, listing $8.6 billion in debts and $7.6 billion in assets.
In September, the company emerged from bankruptcy having slashed about $2 billion in debt. Rite Aid also now operates as a private company, meaning it does not have to publicly disclose financial information.
At some Philadelphia-area stores, the financial restructuring has not improved the customer experience.
» READ MORE: Some Rite Aid shelves remain bare even post-bankruptcy. Experts explain why that may be.
Consumers across the region have reported bare shelves. On the Main Line last month, the Wynnewood store’s inventory remained at least as low as it was in December. Even drugstore staples like pain relievers and cold medicines were in short supply.
Rite Aid said in a statement last month that it was committed to addressing these issues.
“Our top priority is nurturing the health and championing the well-being of our customers and the communities we serve,” spokesperson Alicja Wojczyk said at the time. “Rite Aid continues to fill prescriptions and provide immunizations as normal.”
Citing anonymous sources, the Wall Street Journal reported earlier this month that Rite Aid executives were mulling a second bankruptcy, or the sale of all or part of its business.