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").
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 firstname.lastname@example.org 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 email@example.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.
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