Robbins LLP reminds investors that a shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired Dollar General Corporation (NYSE: DG) common stock between May 28, 2020 and August 30, 2023. 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.
What is this Case About: Dollar General Corporation (DG) Made False and Misleading Statements Regarding its Business Prospects
According to the complaint, during the class period, defendants failed to disclose that:
(a) Dollar General stores were chronically understaffed and suffering from logistical and inventory management problems, which left stores with tens of millions of dollars’ worth of outdated and unwanted inventory, mispriced goods, and lost and damaged items;
(b) large backlogs of unsellable merchandise had built up at Dollar General’s stores, which inventory had not been timely written down due to understaffing and the Company’s failure to manage its inventory;
(c) the allotment of employee hours per store per week imposed by Dollar General management placed employees in virtually impossible situations where assigned tasks, including those necessary to effective store operations, could not be completed within the allotted time;
(d) Dollar General was systematically overcharging customers for items upon checkout above the listed price in violation of state laws, including state law violations identified by state regulators in Arizona, Louisiana, Mississippi, Missouri, North Carolina, and Ohio;
(e) Dollar General’s reported revenue and earnings during the class period were artificially inflated by defendants’ over-pricing scheme;
(f) Dollar General’s failure to manage store inventories and accurately price items upon checkout risked the loss of customers, lower sales, adverse regulatory actions, and reputational fallout; and
(g) that Dollar General was not on track to achieve its projected 4Q22 or FY23 projected guidance provided to investors.
On August 31, 2023, Dollar General reported poor 2Q23 financial results, slashing its sales and profit outlook for FY23. On this news, the price of Dollar General stock declined $19.00 per share, or 12%, on August 31, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Dollar General Corporation. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by January 26, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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