DALLAS--(BUSINESS WIRE)--Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that a federal class action lawsuit has been filed against Family Dollar Stores, Inc. (“Family Dollar” or “Company”) (NYSE: FDO). The firms are investigating additional legal claims against the officers and Board of Directors of Family Dollar during the period of October 3, 2012 to January 2, 2013 (the “Class Period”).
If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com, or Zachary Groover at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at firstname.lastname@example.org. There is no cost or fee to you.
In a recently filed federal class action complaint, Family Dollar and certain of its officers and directors were charged with violating certain provisions of the Securities Exchange Act of 1934. Specifically, the complaint alleges that among other things, defendants’ misrepresented and/or failed to disclose that: (a) the Company’s intentional efforts to increase sales of certain consumables to better compete with particular competitors significantly diminished profits in the first quarter of 2013 and in December 2012; (b) significant price cuts made in an attempt to move unsalable items diminished profits for the first quarter of 2013 and December 2012; (c) the Company’s sales of more profitable items significantly underperformed expectations in the first quarter of 2013 and during December 2012; (d) inflated inventories in stores would significantly weigh down profitability in 2013; (e) despite defendants’ press releases on November 20, 2012 and December 24, 2012, the stores would actually be open in an attempt to boost declining sales; and (f) based on the above, defendants lacked a reasonable basis for their positive statements regarding the Company’s sales and profitability during the Class Period. According to the complaint, when the true facts were discovered, the price of Family Dollar stock fell significantly.
Shareholder rights attorney Willie Briscoe said, “Recent revelations about alleged improper business practices and procedures regarding key aspects of Family Dollar’s business and other misleading financial statements have prompted the firms to investigate possible breaches of fiduciary duties and other violations of state law by Family Dollar’s officers and directors. Based on our investigation, we are prepared to pursue litigation to preserve the company and the value of Family Dollar stock for all shareholders.”
The Briscoe Law Firm, PLLC is a full service business litigation, commercial transaction, and public advocacy firm with more than 20 years of experience in complex litigation and transactional matters.
Powers Taylor, LLP is a boutique litigation law firm that handles a variety of complex business litigation matters, including claims of investor and stockholder fraud, shareholder oppression, shareholder derivative suits, and security class actions.