Family Dollar rodent infestation case results in $41.7M fine

Family Dollar rodent infestation forfeiture overview:

• Who: Family Dollar Stores LLC will pay $41.7 million in a deal with the U.S. Department of Justice.
• Why: Family Dollar pleaded guilty to one misdemeanor count of causing FDA-regulated products to become adulterated by storing them in a rodent-infested warehouse.
• Where: The Family Dollar rodent infestation lawsuit was filed in Arkansas federal court.

Family Dollar Stores LLC, a subsidiary of Dollar Tree Inc., agreed to pay a total fine and forfeiture of nearly $41.7 million in a deal with the U.S. Department of Justice to settle a Family Dollar rodent infestation case, Law360 reports.

Family Dollar reportedly pleaded guilty to one misdemeanor count of causing products regulated by the U.S. Food and Drug Administration (FDA) to become adulterated by being stored in unsanitary conditions at an Arkansas distribution center.

The Department of Justice indicated that the Family Dollar rodent infestation fine and forfeiture is the largest food safety criminal penalty that has been reached to date.

In addition to monetary penalties, Family Dollar must abide by corporate compliance and reporting requirements for three years, according to the Department of Justice.

“Consumers trust that products purchased from retail stores such as Family Dollar are safe,” said Jonathan Ross, the U.S. attorney for the Eastern District of Arkansas. “It is incomprehensible that Family Dollar knew about the rodent and pest issues at its distribution center in Arkansas but continued to ship products that were unsafe and insanitary.”

Family Dollar rodent infestation prevention measures in place, Dollar Tree CEO says

Dollar Tree CEO Rick Dreiling said the company has taken steps to ensure the company will comply with safety regulations.

“Having reached full resolution with the DOJ, we are continuing to move forward on our business transformation, safety procedures and compliance initiatives,” said Dreiling, who joined Dollar Tree’s board of directors in March 2022. “I was very disappointed to learn about these unacceptable issues at one of Family Dollar’s facilities.” 

“Since that time, and even more directly when I assumed the role of CEO, we have worked diligently to help Family Dollar resolve this historical matter and significantly enhance our policies, procedures and physical facilities to ensure it is not repeated.”

Dollar Tree said it has created new compliance and safety roles within the company, including a new chief legal officer and a new chief ethics and compliance officer.

Family Dollar reportedly learned of rodent issues with its deliveries in 2020, and by January 2021, the company admitted that its employees were aware that FDA-regulated products were contaminated. Despite this knowledge, Family Dollar allegedly continued to ship those products all over the country. An FDA inspection reportedly discovered evidence of dead rodents, rodent feces and other rodent infestation evidence.

Last year, the company reached a Family Dollar rodent infestation class action settlement over claims its West Memphis, Arkansas, distribution center was unsanitary.

What do you think about the Family Dollar rodent infestation problem? Let us know in the comments.

The Family Dollar rodent infestation lawsuit is United States of America v. Family Dollar Stores LLC, Case No. 2:24-cr-00001-JTK, in the U.S. District Court for the Eastern District of Arkansas, Delta Division.

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