‘Unsanitary Conditions’: Family Dollar Hit with Class Action After News of Rodent Infestation at Arkansas Facility [UPDATE]
Last Updated on December 1, 2023
Lacy et al. v. Family Dollar, Inc.
Filed: February 23, 2022 ◆§ 3:22-cv-00098
Family Dollar faces a class action in the wake of the value retailer’s closure of more than 400 stores across six states over unsanitary conditions reported by the FDA.
Case Updates
December 1, 2023 – Family Dollar Rodent Infestation Lawsuit Settlement Website Is Live
The official settlement website for the Family Dollar lawsuit detailed on this page is live and can be found at FDWarehouseSettlement.com.
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Consumers covered by the deal, which awaits final approval from the court, have until January 9, 2024 to file a claim.
To submit a claim, head to this page and, if applicable, enter the notice ID and confirmation code included in your personalized settlement notice. You do not need a notice ID or confirmation code in order to submit a claim for settlement benefits.
Details of the settlement can be found in the update below.
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November 7, 2023 – Family Dollar Arkansas Facility Rodent Infestation Lawsuit Settled
Family Dollar has agreed to settle the proposed class action detailed on this page, which was consolidated with similar lawsuits in August 2022 as part of a multidistrict litigation.
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The deal, which received preliminary approval from U.S. District Judge Sheryl H. Lipman on October 27 of this year, covers anyone who, between January 1, 2020 and February 18, 2022, purchased any product at a Family Dollar store in Arkansas, Alabama, Louisiana, Mississippi, Missouri or Tennessee that was serviced by the West Memphis, Arkansas Family Dollar distribution center.
Covered individuals who file a valid claim attesting that they shopped at one of the affected stores can receive one $25 Family Dollar gift card per household.
Class members can submit a claim by U.S. mail or electronically when the official settlement website— FDWarehouseSettlement.com—goes live. ClassAction.org will update this page when the settlement website goes live, so be sure to check back often.
The company has also agreed as part of the settlement to implement “extensive remedial actions” to prevent problems that allegedly occurred at the West Memphis distribution center from occurring again, court documents state.
According to the preliminary approval order, some of these corrective actions include “the retention of a number of third-party consultants with expertise in food safety and regulatory compliance; the implementation of more than sixty Standard Operating Procedures ... ; the creation of a large food safety department; and the significant enhancement of compliance systems and processes throughout the organization.”
Those who file valid claims can expect to receive their payments after the settlement is granted final approval and any appeals are resolved. A final approval hearing has been scheduled for April 5, 2024.
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March 18, 2022 – As Class Actions Mount, Dollar Tree Subpoenaed by Federal Grand Jury
Dollar Tree, Inc., Family Dollar’s parent company, revealed this week that it has received a federal grand jury subpoena related to rodent infestation problems at its West Memphis, Arkansas distribution center.
Dollar Tree stated in a U.S. Securities and Exchange Commission filing that the March 1 subpoena requested information, documents and records pertaining to “pests, sanitation and compliance with the law” regarding certain procedures and products. The company stated that it intends to cooperate fully yet could not offer any assurances with regard to “the timing or outcome of this matter.”
According to legal publication Law360, Dollar Tree faces at least nine proposed class action lawsuits, including two additional cases in Arkansas and one each in Tennessee and Alabama, in the wake of the FDA’s discovery of the apparent rodent infestation at the West Memphis Family Dollar distribution center. The company said in the SEC filing that it anticipates it will face additional class action litigation.
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Family Dollar faces a proposed class action lawsuit in the wake of the value retailer’s closure of more than 400 stores across six states after the FDA announced that it had found the locations to have unsanitary conditions, including one with a rodent infestation.
The 35-page case alleges Family Dollar had known of the rodent infestation plaguing its West Memphis, Arkansas distribution center since at least late March 2021 and chose not to disclose the problem to the public “so that it could continue to profit from the sale of the Products.” The lawsuit chides Family Dollar for its allegedly “negligent, reckless and/or intentional” sale of products shipped from the Arkansas facility that may have been contaminated due to the building’s rodent infestation and other unsanitary conditions.
The lawsuit, citing a February 19 New York Times report, says that Family Dollar, who temporarily shuttered stores in Mississippi, Arkansas, Louisiana, Alabama, Missouri and Tennessee, put consumers at risk by continuing to ship products from the rodent-infested warehouse and failing to correct the problem. As a result, consumers purchased products of a lesser standard, grade and quality than represented by Family Dollar and that are unfit for their intended purpose, the suit says.
The case states that it was only on February 18, 2022 that Family Dollar announced it would voluntarily recall certain FDA-regulated products that were affected by the rodent infestation, namely those stored and shipped to the 404 stores that were temporarily closed. The recall came on the same day the FDA warned consumers not to use certain potentially contaminated products purchased from affected stores since the beginning of the year. According to the FDA, products covered by the Family Dollar recall include drugs, medical devices, cosmetics, dietary supplements and human and animal food products.
The lawsuit looks to cover all persons residing in Mississippi, Missouri, Tennessee, Alabama, Arkansas or Louisiana who, during the maximum period of time permitted by law, purchased any over-the-counter medications, medical devices, dietary supplements, cosmetics, human foods and pet foods from Family Dollar.
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