Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Family Dollar Stores, Inc.

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NEW YORK--(Business Wire)--
Robbins Geller Rudman & Dowd LLP ("Robbins Geller")
(http://www.rgrdlaw.com/cases/familydollar/) today announced that a class action
has been commenced on behalf of an institutional investor in the United States
District Court for the Western District of North Carolina on behalf of
purchasers of Family Dollar Stores, Inc. ("Family Dollar") (NYSE:FDO) common
stock during the period between October 3, 2012 and January 2, 2013 (the "Class
Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60
days from today. If you wish to discuss this action or have any questions
concerning this notice or your rights or interests, please contact plaintiff`s
counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at
800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a
member of this class, you can view a copy of the complaint as filed or join this
class action online at http://www.rgrdlaw.com/cases/familydollar/. Any member of
the putative 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.

The complaint charges Family Dollar and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. Family Dollar operates a
chain of approximately 7,500 general merchandise retail discount stores in 45
states, which sell consumables, home products, apparel and accessories, and
seasonal and electronics products.

The complaint alleges that during the Class Period, defendants issued materially
false and misleading statements regarding Family Dollar`s then-present sales
demand, profitability and financial results for the first quarter of 2013, ended
November 24, 2012, and for December 2012. As a result of defendants` false
statements, Family Dollar`s stock traded at artificially inflated prices
throughout the Class Period, reaching a high of $71.20 per share by November 30,
2012. Meanwhile, Family Dollar`s senior executives cashed in, selling their own
Family Dollar stock at artificially inflated prices, including its Chief
Executive Officer who sold more than $15.6 million worth of his Family Dollar
stock during the Class Period.

Then, on January 3, 2013, before the markets opened, Family Dollar issued a
press release disclosing that sales in the Company`s first quarter 2013 - which
had ended November 24, 2012 - had significantly underperformed, with significant
increases in sales of lower margin consumables rather than higher margin
discretionary products, that the Company`s soft holiday sales in December had
required significant discounting, that the Company`s inventory had become
bloated, and that, as a result, defendants were slashing the Company`s 2013
financial guidance. The price of Family Dollar stock dropped on this news,
falling $8.30 per share - or approximately 13% - to close at $55.74 per share on
January 3, 2012.

According to the complaint, the true facts, which were known by the defendants
but concealed from the investing public during the Class Period, were as
follows: (a) the Company`s intentional efforts to increase sales of lower margin
consumables, such as cigarettes, 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 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 in 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 and during December 2012; (d) bloated
inventories in Family Dollar`s stores would significantly weigh down 2013
profitability; and (e) 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.

Plaintiff seeks to recover damages on behalf of all purchasers of Family Dollar
common stock during the Class Period (the "Class"). The plaintiff is represented
by Robbins Geller, which has expertise in prosecuting investor class actions and
extensive experience in actions involving financial fraud.

Robbins Geller represents U.S. and international institutional investors in
contingency-based securities and corporate litigation. With nearly 200 lawyers
in nine offices, the firm represents hundreds of public and multi-employer
pension funds with combined assets under management in excess of $2 trillion.
The firm has obtained many of the largest recoveries in history and has been
ranked number one in the number of shareholder class action recoveries in MSCI`s
Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm`s
recoveries have averaged 35% above the median for all firms over the past seven
years (2005-2011). Please visit http://www.rgrdlaw.com for more information.

Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld
djr@rgrdlaw.com

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