Family Dollar reaches $1.1M settlement over rodent infestation

Family Dollar settlement overview:

• Who: Family Dollar Stores agreed to a settlement with the state of Tennessee.
• Why: The settlement resolves claims the retailer sold products contaminated by a rodent infestation at its West Memphis, Arkansas, distribution center.
• Where: The Family Dollar settlement was reached in Tennessee state court.

Family Dollar Stores reached a $1.1 million settlement with the state of Tennessee to end claims the retailer sold products contaminated by a rodent infestation at its West Memphis, Arkansas, distribution center.

Tennessee Attorney General Jonathan Skrmetti filed a petition for approval of the settlement in Tennessee state court Jan. 8. 

The settlement puts an end to claims Family Dollar sold products to Tennessee consumers that were contaminated by rats at a West Memphis distribution center, in violation of the Tennessee Consumer Protection Act (TCPA).

“When a mom or dad buys groceries for their kids, they should never have to wonder whether some nasty critter got the first bite,” said Tennessee Attorney General Jonathan Skrmetti, in a statement. 

According to the settlement, Family Dollar recalled certain products in February 2022 after the FDA initiated an inspection of its West Memphis distribution center and identified the presence of rodents at the facility. 

Family Dollar denies wrongdoing

The Tennessee attorney general’s office met with representatives of Family Dollar in May 2024 and claimed it violated the TCPA by selling certain products the state argued were “deteriorated” or “adulterated.” 

Family Dollar, in agreeing to the settlement, denied that it committed any wrongdoing or violated the TCPA. 

As part of the agreement, the retailer will refrain from representing goods sold at its Tennessee stores as “original” or “new” if they are materially deteriorated. 

The settlement releases Family Dollar and its parent company Dollar Tree from claims related to the conditions or products stored at its West Memphis distribution center and/or the conditions and products sold at Family Dollar or Dollar Tree stores in Tennessee.

The deal does not include any civil or administrative liability under any statute, regulation, or rule not covered by the settlement, such as antitrust, securities, tax, environmental or employment law violations.

A group of Family Dollar employees who worked at the West Memphis, Arkansas, distribution center filed a class action lawsuit against the company in June 2022 over claims they were forced to work in unsanitary, rat infested conditions. 

What do you think of the Family Dollar settlement? Let us know in the comments.

The Family Dollar settlement is In re: State of Tennessee v. Family Dollar Stores of Tennessee, LLC, Case No. 24-005 in the Chancery Court of Davidson County, Tennessee.

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