Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Family Dollar Stores, Inc.

Mon Feb 25, 2013 3:17pm EST

* Reuters is not responsible for the content in this press release.


WILMINGTON, Del.--(Business Wire)--
Rigrodsky & Long, P.A.

* Do you, or did you, own shares in Family Dollar Stores, Inc. (NYSE: FDO)?
* Did you purchase your shares prior to October 3, 2012, or between October 3,
2012 and January 2, 2013?
* Did you lose money in your investment in Family Dollar Stores, Inc.?
* Do you want to discuss your rights?

Rigrodsky & Long, P.A. announces that a complaint has been filed in the United
States District Court for the Western District of North Carolina on behalf of
all persons or entities that purchased the common stock of Family Dollar Stores,
Inc. ("Family Dollar" or the "Company") (NYSE: FDO) between October 3, 2012 and
January 2, 2013 (the "Class Period"), alleging violations of the Securities
Exchange Act of 1934 against the Company and certain of its officers (the

If you purchased shares of Family Dollar during the Class Period, or purchased
shares prior to the Class Period and still hold Family Dollar, and wish to
discuss this action or have any questions concerning this notice or your rights
or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of
Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at
(888) 969-4242, by e-mail to info@rigrodskylong.com, or at:

Family Dollar operates a chain of more than 7,400 general merchandise retail
discount stores in 45 states, providing value-conscious consumers with a
selection of competitively priced merchandise in convenient neighborhood stores.
The Complaint alleges that throughout the Class Period, defendants made
materially false and misleading statements, and omitted materially adverse
facts, about the Company`s business, operations and prospects. Specifically, the
Complaint alleges that: (a) the Company`s intentional efforts to increase sales
of lower-margin consumables, such as cigarettes and other tobacco products,
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 (ended November 24, 2012) 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 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 ended November 24, 2012 and during December 2012; (d)
bloated inventories in Family Dollar`s stores would significantly weight down
2013 profitability; (e) contrary to what defendants` November 20, 2012 and
December 24, 2012 press releases had both stated and implied, i.e., that the
Company`s stores were going to be open on Thanksgiving and Christmas Day to
address increased consumer demand, those stores were instead going to be open in
a desperate attempt to buttress sagging sales; and (f) 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. As a result of defendants` false and
misleading statements, the Company`s stock traded at artificially inflated
prices during the Class Period. During the Class Period, the Company`s Chairman
of the Board and Chief Executive Officer, Howard R. Levine, sold more than $15.6
million worth of Family Dollar stock at those artificially inflated prices. 

According to the Complaint, on October 3, 2012, Family Dollar issued a press
release announcing its financial results for the fourth quarter and fiscal year
ended August 25, 2012, and providing strong first quarter 2013 and fiscal year
2013 guidance for the quarter then well underway and scheduled to end of
November 24, 2012. On this news, the price of Family Dollar stock increased
$2.56 per share, or 4%, on extremely high trading volume of more than 4.788
million shares. 

However, in a press release issued on January 2, 2013, the Company disclosed its
actual first quarter 2013 and December 2012 financial results, which fell far
below its original bullish statements. On this news, shares in Family Dollar
fell almost 13%, closing at $55.74 per share on January 3, 2013, from a close of
$64.04 per share on January 2, 2013, on volume of over 14 million shares. 

If you wish to serve as lead plaintiff, you must move the Court no later than
April 22, 2013. A lead plaintiff is a representative party acting on behalf of
other class members in directing the litigation. In order to be appointed lead
plaintiff, the Court must determine that the class member`s claim is typical of
the claims of other class members, and that the class member will adequately
represent the class. Your ability to share in any recovery is not, however,
affected by the decision whether or not to serve as a lead plaintiff. Any member
of the proposed 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

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the
firm, with offices in Wilmington, Delaware and Garden City, New York, regularly
litigates securities class, derivative and direct actions, shareholder rights
litigation and corporate governance litigation, including claims for breach of
fiduciary duty and proxy violations in the Delaware Court of Chancery and in
state and federal courts throughout the United States. 

Attorney advertising. Prior results do not guarantee a similar outcome.

Rigrodsky & Long, P.A.
Timothy J. MacFall, Esquire
Peter Allocco
Fax: 302-654-7530

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