Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Family Dollar Stores Inc.

Thu Feb 28, 2013 6:10pm EST

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WAYNE, Pa.,  Feb. 28, 2013  /PRNewswire/ -- Ryan & Maniskas, LLP 
(www.rmclasslaw.com/cases/fdo) announces that a class action lawsuit 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").

(Logo:  http://photos.prnewswire.com/prnh/20121112/MM11729LOGO)

For more information regarding this class action suit, please contact Ryan &
Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by
email at  rmaniskas@rmclasslaw.com  or visit:  www.rmclasslaw.com/cases/fdo.   

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 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.

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 are a member of the class, you may, no later than  April 22, 2013,
request that the Court appoint you as lead plaintiff of the class.  A lead
plaintiff is a representative party that acts 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. 
Under certain circumstances, one or more class members may together serve as
"lead plaintiff."  Your ability to share in any recovery is not, however,
affected by the decision whether or not to serve as a lead plaintiff.  You may
retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your
counsel in this action.  

For more information about the case or to participate online, please visit: 
www.rmclasslaw.com/cases/fdo  or contact  Richard A. Maniskas, Esquire 
toll-free at (877) 316-3218, or by e-mail at  rmaniskas@rmclasslaw.com.   For
more information about class action cases in general or to learn more about Ryan
& Maniskas, LLP, please visit our website:  www.rmclasslaw.com.

Ryan & Maniskas, LLP is a national shareholder litigation firm.  Ryan &
Maniskas, LLP is devoted to protecting the interests of individual and
institutional investors in shareholder actions in state and federal courts
nationwide.

 CONTACT:  Ryan & Maniskas, LLP                 
           Richard A. Maniskas, Esquire         
           995 Old Eagle School Rd., Suite 311  
           Wayne, PA 19087                      
           484-588-5516                         
           877-316-3218                         
           www.rmclasslaw.com/cases/fdo         
           rmaniskas@rmclasslaw.com             


SOURCE  Ryan & Maniskas, LLP

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