DOLLAR GENERAL – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Dollar General Corporation (“Dollar General” or “the Company”) (NASDAQ: DG) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired Dollar General securities from May 28, 2020 through August 30, 2023 (the “Class Period”). Investors who acquired Dollar General securities during this defined timeframe are strongly encouraged to participate in this case by contacting firstname.lastname@example.org. The deadline to file a motion for appointment of lead plaintiff is January 26, 2024.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Dollar General securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST DOLLAR GENERAL
The Dollar General class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose 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from logistical and inventory management problems which left stores with tens of millions of dollars’ worth of outdated and unwanted inventory, mispriced goods, and lost and damaged items; (ii) large backlogs of unsellable merchandise had built up at Dollar General’s stores,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; (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; and (vii) Dollar General was not on track to achieve its guidance during the Class Period and such guidance lacked a reasonable factual basis. On February 23, 2023, Dollar General announced that fourth quarter of 2022 sales and earnings would come in materially below what Dollar General had led investors to expect as recently as December 2022. On this news, the price of Dollar General common stock fell. Then, on March 16, 2023, Dollar General revealed, among other things, that it missed its prior annual net sales guidance by approximately $140 million. On this news, the price of Dollar General common stock fell nearly 3%. Thereafter, on June 1, 2023, Dollar General reported first quarter of 2023 revenue of $130 million below analyst’s estimates. Dollar General also slashed its full year 2023 financial forecast and that it further only expected full year 2023 net sales growth in the range of 3.5% to 5%, down 26% at the midpoint from the prior 5.5% to 6% range provided in March 2023. On this news, the price of Dollar General common stock fell nearly 20%. Finally, on August 31, 2023, Dollar General reported lower than expected second quarter of 2023 financial results and again slashed its sales and profit outlook for full year 2023. Dollar General blamed weaker consumer spending on non-essential purchases and increasing theft for the shortfall. On this news, the price of Dollar General common stock fell more than 12%.
ABOUT DOLLAR GENERAL
- Dollar General Corporation, established in 1939 by J.L. Turner and Cal Turner, stands as a prominent American discount retail chain. The company operates small-format stores, strategically located in suburban and rural areas, with a focus on offering affordable merchandise, ranging from groceries and household goods to clothing. Over the years, Dollar General has grown into one of the largest discount retailers in the United States, boasting a widespread presence that serves millions of customers. Known for its commitment to low prices, Dollar General attracts budget-conscious consumers seeking convenient and economical shopping options. The company is publicly traded on the New York Stock Exchange under the symbol DG.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in Dollar General during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is January 26, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential class members in the class action lawsuit against Dollar General are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.