Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of Dollar General Corporation (DG) Investors

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Nov 29, 2023 05:59 pm
NEW YORK -- 

The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Middle District of Tennessee on behalf of those who acquired Dollar General Corporation (“Dollar General” or the “Company) (NYSE: DG) securities during the period from May 28, 2020 through August 30, 2023, inclusive (the “Class Period”). Investors have until January 26, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

On February 23, 2023, Dollar General announced that Q4 2022 sales and earnings would come in materially below what the Company had led investors to expect as recently as December 2022. On this news, the price of Dollar General shares declined by $8.16 per share, or approximately 3.62%, from $225.27 per share on February 22, 2023 to close at $217.11 on February 23, 2023.

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 shares declined by $6.47 per share, or approximately 3%, from $218.56 per share on March 15, 2023 to close at $212.09 on March 16, 2023.

Thereafter, on June 1, 2023, Dollar General reported Q1 2023 revenue of $130 million below analyst estimates. The Company 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 shares declined by $39.23 per share, or approximately 19.51%, from $201.09 per share on May 31, 2023 to close at $161.86 on June 1, 2023.

Finally, on August 31, 2023, Dollar General reported lower than expected Q2 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 shares declined by $19.16 per share, or approximately 12.15%, from $157.66 per share on August 30, 2023 to close at $138.50 on August 31, 2023.

The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as 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) the Company 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.

If you purchased or otherwise acquired Dollar General securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
[email protected]

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