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SOURCE Faruqi & Faruqi, LLP
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.
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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