NEW YORK, Nov. 30, 2023 (GLOBE NEWSWIRE) --
Bernstein Liebhard LLP:
- Do you, or did you, own shares of Dollar General Corporation (NYSE: DG)?
- Did you purchase your shares between May 28, 2020 and August 30, 2023, inclusive?
- Did you lose money in your investment in Dollar General Corporation?
- Do you want to discuss your rights?
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the common stock of Dollar General Corporation (“Dollar General” or the “Company”) (NYSE: DG) between May 28, 2020 and August 30, 2023, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Middle District of Tennessee and alleges violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased or acquired Dollar General common stock, and/or would like to discuss your legal rights and options please visit Dollar General Corporation Shareholder Class Action Lawsuit or contact paralegal Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
According to the Complaint, Defendant 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.
Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) 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from logistical and inventory management problems which left stores with tens of millions of dollars’ worth of outdated and unwanted inventory, mispriced goods, and lost and damaged items; (ii) large backlogs of unsellable merchandise had built up at Dollar General’s stores,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 Dollar General’s failure to manage its inventory; (iii) 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; (iv) 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; (v) Dollar General’s reported revenue and earnings during the Class Period were artificially inflated by defendants’ over-pricing scheme; and (vi) 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.
On August 31, 2023, Dollar General reported its second quarter 2023 financial results, slashing its FY23 sales and profit outlook. The Company blamed a “headwind,” including weaker consumer spending on non-essential purchases and increasing theft. For the quarter, operating profits decreased 24.2% and EPS decreased 28.5%. The release further conceded that the Company was “taking certain actions to accelerate the pace of its inventory reduction efforts and making additional investments in targeted areas, such as retail labor, to further elevate the in-store experience and better serve its customers” and “expect[ed] an incremental operating profit headwind of up to $170 million in the second half of 2023 from these strategic actions and investments.” Of that $170 million, $95 million would be for markdowns taken on the Company’s existing inventory. Another $75 million would be spent on increased personnel at the stores to both identify and eliminate the inventory to be marked down and to correctly price the items remaining on store shelves.
On this news, the Company’s share price fell $19.16, or over 12%, to close at $138.50 per share on August 31, 2023.
If you wish to serve as lead plaintiff, you must move the Court no later than January 26, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired Dollar General common stock, and/or would like to discuss your legal rights and options please visit Dollar General Corporation Shareholder Class Action Lawsuit or contact paralegal Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
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Contact Information:
Peter Allocco
Paralegal
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
