NEW YORK, Feb. 22, 2013 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Family Dollar Stores, Inc. ("Family Dollar" or the "Company") (NYSE : FDO ).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the Company's efforts to increase sales on low margin goods had caused a significant reduction in Family Dollar's profits for the first quarter of fiscal year 2013 and December 2012; (2) price cuts initiated for the purpose of moving less salable inventory had also diminished profits for the first quarter of fiscal year 2013 and December 2012; (3) Family Dollar's sales of more profitable discretionary goods had significantly underperformed expectations in the first quarter of 2013 and during December 2012; and (4) excess inventories in Family Dollar's stores would significantly weigh down 2013 profitability.
On January 3, 2013, Family Dollar issued a pre-market press release disclosing that sales in the Company's first quarter 2013 – which had ended November 24, 2012 – had failed to meet expectations and slashed 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.
Family Dollar's senior executives had sold their own Family Dollar stock at inflated prices, including its Chief Executive Officer who sold more than $15.6 million worth of his Family Dollar stock between October 3, 2012 and January 2, 2013.
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If you invested in Family Dollar stock or options between October 3, 2012 and January 2, 2013 and would like to discuss your legal rights, visit www.faruqilaw.com/FamilyDollar. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com or firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Family Dollar's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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