DG INVESTOR ALERT: Edelson Lechtzin LLP Urges Dollar General Corporation (NYSE: DG) Shareholders to Consult Counsel About the Pending Securities Fraud Class Action
NEWTOWN, PA, December 13, 2023 ˗ The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Dollar General Corporation (“Dollar General”) (NYSE: DG) common stock between May 28, 2020, and August 30, 2023 (the “Class Period”).
Investors who purchased Dollar General common stock may move the U.S. District Court for the Middle District of Tennessee to appoint them as lead plaintiff, no later than January 26, 2024. Current holders of Dollar General stock may pursue corporate governance reforms. Please contact Edelson Lechtzin LLP at 844-696-7492 to discuss your investment losses, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Dollar General Corporation
Dollar General is a discount retail chain headquartered in Goodlettsville, Tennessee. The company specializes in the sale of consumer goods, including packaged and fresh foods, produce, beauty and household products, beer, and wine.
The Securities Fraud Claims
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or omissions regarding Dollar General’s business, operations, and prospects, including that: (i) Dollar General stores were chronically understaffed and suffering from logistical and inventory management problems that left stores with tens of millions of dollars of outdated and unwanted inventory, mispriced goods, and lost or damaged items; (ii) large backlogs of unsellable merchandise had accumulated at Dollar General stores, which inventory had not been timely written down due to understaffing and the company’s failure to manage its inventory; (iii) the allotment of employee hours per store per week imposed by the company’s management placed employees in untenable 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; (vii) Dollar General was not on track to achieve the 4Q22 guidance provided to investors of 6% to 7% same store sales growth or quarterly diluted EPS of $3.15 to $3.30, and was running more than one hundred million dollars behind the Company’s net sales guidance of 11% growth.
On February 23, 2023, Dollar General pre-released its fourth quarter 2022 and full year 2022 financial results, disclosing that its 4Q22 sales and earnings would come in materially below what the defendants had led investors to expect based on their Class Period statements. On this news, the price of Dollar General stock declined more than $8 per share, closing at just over $217 per share, on an unusually high trading volume.
On March 16, 2023, Dollar General revealed that it missed the Company’s prior annual net sales guidance by approximately $140 million. On this news, the price of Dollar General stock closed down $6.47 per share, on an unusually high trading volume of more than 3 million shares.
On June 1, 2023, Dollar General announced its first quarter 2023 results, reporting its first quarter 2023 revenue that was $130 million below analysts’ estimates. The Company also slashed its full year 2023 earnings forecast. On this news, the price of Dollar General’s common stock closed over $39 per share or nearly 20%.
On August 31, 2023, Dollar General reported lower-than-expected second-quarter 2023 financial results and slashed its sales and profit outlook for the full year 2023. The Company blamed weaker consumer spending on non-essential purchases and increasing theft. On this news, the price of Dollar General stock declined another $19.16 per share, or 12%, on August 31, 2023.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]
Email: [email protected]
Web: www.edelson-law.com
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.