Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Family Dollar Stores, Inc.
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?
Rigrodsky & 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.
While Rigrodsky & 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 States.
Attorney advertising. Prior results do not guarantee a similar outcome.
KEYWORDS: United States North America Delaware New York
The article Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Family Dollar Stores, Inc. originally appeared on Fool.com.
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