WILMINGTON, Del. -- (Business Wire)
Rigrodsky & Long, P.A.
- Do you, or did you, own shares in Family Dollar Stores, Inc. (NYSE: FDO)?
- Did you purchase your shares prior to October 3, 2012, or between
October 3, 2012 and January 2, 2013?
- Did you lose money in your investment in Family Dollar Stores, Inc.?
- Do you want to discuss your rights?
& Long, P.A. announces that a complaint has been filed in the
United States District Court for the Western District of North Carolina
on behalf of all persons or entities that purchased the common stock of
Family Dollar Stores, Inc. (“Family Dollar” or the “Company”) (NYSE: FDO)
between October 3, 2012 and January 2, 2013 (the “Class Period”),
alleging violations of the Securities Exchange Act of 1934 against the
Company and certain of its officers (the “Complaint”).
If you purchased shares of Family Dollar during the Class Period, or
purchased shares prior to the Class Period and still hold Family Dollar,
and wish to discuss this action or have any questions concerning this
notice or your rights or interests, please contact Timothy
J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825
East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by
e-mail to email@example.com,
or at: http://www.rigrodskylong.com/investigations/family-dollar-stores-inc-fdo.
Family Dollar operates a chain of more than 7,400 general merchandise
retail discount stores in 45 states, providing value-conscious consumers
with a selection of competitively priced merchandise in convenient
neighborhood stores. The Complaint alleges that throughout the Class
Period, defendants made materially false and misleading statements, and
omitted materially adverse facts, about the Company’s business,
operations and prospects. Specifically, the Complaint alleges that: (a)
the Company’s intentional efforts to increase sales of lower-margin
consumables, such as cigarettes and other tobacco products, Pepsi
drinks, gift cards, magazines and other high-turnover merchandise, in
order to increase foot traffic and better compete against chains such as
Dollar General Corp and Wal-Mart Stores Inc., had significantly
diminished profits in the first quarter of 2013 (ended November 24,
2012) and in December 2012; (b) significant price cuts undertaken in an
attempt to move unsalable inventory had also significantly diminished
profits in the first quarter of 2013 and December 2012; (c) Family
Dollar’s sales of more profitable discretionary items such as toys and
other household goods had significantly underperformed expectations in
the first quarter of 2013 ended November 24, 2012 and during December
2012; (d) bloated inventories in Family Dollar’s stores would
significantly weight down 2013 profitability; (e) contrary to what
defendants’ November 20, 2012 and December 24, 2012 press releases had
both stated and implied, i.e., that the Company’s stores were
going to be open on Thanksgiving and Christmas Day to address increased
consumer demand, those stores were instead going to be open in a
desperate attempt to buttress sagging sales; and (f) based upon the
above, defendants lacked a reasonable basis for their positive
statements about the Company’s sales and profitability during the Class
Period, in particular their first quarter and fiscal 2013 guidance. As a
result of defendants’ false and misleading statements, the Company’s
stock traded at artificially inflated prices during the Class Period.
During the Class Period, the Company’s Chairman of the Board and Chief
Executive Officer, Howard R. Levine, sold more than $15.6 million worth
of Family Dollar stock at those artificially inflated prices.
According to the Complaint, on October 3, 2012, Family Dollar issued a
press release announcing its financial results for the fourth quarter
and fiscal year ended August 25, 2012, and providing strong first
quarter 2013 and fiscal year 2013 guidance for the quarter then well
underway and scheduled to end of November 24, 2012. On this news, the
price of Family Dollar stock increased $2.56 per share, or 4%, on
extremely high trading volume of more than 4.788 million shares.
However, in a press release issued on January 2, 2013, the Company
disclosed its actual first quarter 2013 and December 2012 financial
results, which fell far below its original bullish statements. On this
news, shares in Family Dollar fell almost 13%, closing at $55.74 per
share on January 3, 2013, from a close of $64.04 per share on January 2,
2013, on volume of over 14 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later
than April 22, 2013. A lead plaintiff is a representative party acting
on behalf of other class members in directing the litigation. In order
to be appointed lead plaintiff, the Court must determine that the class
member’s claim is typical of the claims of other class members, and that
the class member will adequately represent the class. Your ability to
share in any recovery is not, however, affected by the decision whether
or not to serve as a lead plaintiff. Any member of the proposed class
may move the court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent class member.
& Long, P.A. did not file the Complaint in this matter, the
firm, with offices in Wilmington, Delaware and Garden City, New York, regularly
litigates securities class, derivative and direct actions, shareholder
rights litigation and corporate governance litigation, including
claims for breach of fiduciary duty and proxy violations in the Delaware
Court of Chancery and in state and federal courts throughout the United
Attorney advertising. Prior results do not guarantee a similar outcome.
Rigrodsky & Long, P.A.
Timothy J. MacFall, Esquire
Source: Rigrodsky & Long, P.A.
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