Case Summary

Dollar General

NYSE: DG

Case Details

  • Washtenaw County Employees' Retirement System v. Dollar General Corporation et al.
  • Class Period:May 28, 2020 - August 30, 2023
  • Date Filed:November 27, 2023
  • Jurisdiction:U.S. District Court, Middle District of Tennessee
  • Docket Number: 3:23-cv-01250
  • Lead Plaintiff Deadline: January 26, 2024
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Overview

A class action lawsuit has been filed against Dollar General Corporation, (“Dollar General”, “DG” or the “Company”) (NYSE: DG) and certain of the Company’s top executive officers alleging that they violated the federal securities laws.  The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired Dollar General common stock between May 28, 2020, and August 30, 2023, inclusive (the “Class Period”).

Dollar General is a discount retailer that sells consumer goods, including packaged foods, fresh foods and produce, beauty and household products, and beer and wine, primarily throughout the southern, southwestern, midwestern, and eastern United States. The Company’s core customers are low- and fixed-income households. Over 80% of the Company’s items are priced at or below $5.

The lawsuit alleges that defendants chronically understaffed its stores and declined to remediate known logistical problems and other significant operational difficulties leading to the buildup of unwanted inventory, the destruction and loss of tens of millions of dollars’ worth of store merchandise, the mispricing of items, and the systematic overcharging of Dollar General’s customers at checkout above the listed retail price.  Defendants knowingly limited store labor hours in a manner which placed employees in situations where the assigned tasks could not possibly be completed within the allotted time.  Furthermore, and as later confirmed by several adverse regulatory actions, Dollar General implemented a campaign of systematically overcharging customers at the register for items that were marked at much lower prices on the shelf. The overcharges dropped directly to the bottom line as profits. Dollar General’s deceptive pricing was so pervasive that, in November 2022, Ohio’s Attorney General brought a lawsuit against the Company.

On February 23, 2023, Dollar General announced that fourth quarter of 2022 sales and earnings would come in materially below what Dollar General had led investors to expect as recently as December 2022. On this news, the price of Dollar General common stock fell. Then, on March 16, 2023, Dollar General revealed, among other things, that it missed its prior annual net sales guidance by approximately $140 million. On this news, the price of Dollar General common stock fell nearly 3%.

Thereafter, on June 1, 2023, Dollar General reported first quarter of 2023 revenue of $130 million below analyst’s estimates. Dollar General also slashed its full year 2023 financial forecast and that it further only expected full year 2023 net sales growth in the range of 3.5% to 5%, down 26% at the midpoint from the prior 5.5% to 6% range provided in March 2023. On this news, the price of Dollar General common stock fell nearly 20%. Finally, on August 31, 2023, Dollar General reported lower than expected second quarter of 2023 financial results and again slashed its sales and profit outlook for full year 2023. Dollar General blamed weaker consumer spending on non-essential purchases and increasing theft for the shortfall. On this news, the price of Dollar General common stock fell more than 12%.

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If you purchased or otherwise acquired Dollar General common stock between May 28, 2020, and August 30, 2023, inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Dollar General lawsuit is January 26, 2024.

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