$45M Family Dollar Gender Pay Bias Class Action Settlement Approved

A $45 million settlement in a class action lawsuit alleging Family Dollar discriminated against female store managers by paying them less than their male counterparts was approved by a federal judge.

Lead plaintiffs, including 49 female store managers, claimed in their class action lawsuit that Family Dollar paid them and other female store managers less than men in the same position.

The plaintiffs alleged that the pay structure systematically discriminated against them because of their gender in violation of the Civil Rights Act of 1964 and Equal Pay Act of 1963.

The class action lawsuit was initiated in 2008 and “vigorously litigated,” according to the settlement agreement, since.

“This is not a case in which the Parties reached an early or easy settlement,” states the Family Dollar class action settlement agreement. “Instead, this has been a hard-fought case in which both sides worked diligently to gather and interpret information and to represent their clients in discovery, in litigating class certification, in preparation for trial, and later in mediation.”

Under the terms of the settlement agreement, Family Dollar will pay $45 million to exit the class action lawsuit. The plaintiffs’ attorneys will receive one-third of that amount, class representatives will receive $10,000 each, and each class action plaintiff will receive a $5,000 service award.

“Service payment awards are routinely approved in class actions to encourage socially beneficial litigation by compensating named plaintiffs for their expenses related to travel and other incidental costs, as well as their personal time spent advancing the litigation on behalf of the class and for any personal risk they undertook,” notes the order approving the Family Dollar class action settlement

Class Members will be notified by direct mail, according to the agreement.

“The settlement achieves a favorable result without the risks, costs, and delay of additional sustained litigation, appeals and remands,” states the approved Family Dollar settlement agreement.

The Family Dollar class action lawsuit alleged that female store managers at Family Dollar were paid less than males since at least July 2002. The class action lawsuit was certified for a nationwide Class.

Family Dollar fought the class action lawsuit, introducing multiple motions to dismiss. After mediation failed in 2011, Family Dollar argued that a U.S. Supreme Court decision should invalidate the claims. Family Dollar initially won dismissal, but that decision was overturned on appeal by the Fourth Circuit.

Family Dollar attempted to take the class action lawsuit to the Supreme Court, but was rejected. The parties entered into settlement negotiations again in March 2017 to eventually arrive at the $45 million settlement. After a fairness hearing on Wednesday, U.S. District Judge Max O. Cogburn Jr. approved the Family Dollar class action settlement.

“The adequacy of the Settlement Agreement — when weighed against the risks and expenses of continued litigation and an extremely lengthy trial — favors settlement,” noted the judge in his order. “Therefore, the Court finds that the settlement is a fair, reasonable and adequate resolution of the disputes between the Parties.”

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

Plaintiffs are represented by Gregory Wiggins and Robert Wiggins Jr. of Wiggins Childs Pantazis Fisher & Goldfarb LLC.

The Family Dollar Equal Pay Class Action Lawsuit is Scott, et al. v. Family Dollar Stores Inc., Case No. 3:08­-cv­00540, in the U.S. District Court for the Western District of North Carolina.