NEW YORK, May 1, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Middle District of Tennessee on behalf of all purchasers of Dollar General Corporation ("Dollar General" or the "Company") (NYSE:DG) securities between May 12, 1998 and April 27, 2001, inclusive (the "Class Period").
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Besides issuing a series of false and misleading press releases and/or failing to disclose adverse facts about its financial results, the complaint specifically alleges that the Company: (i) deceived the investing public regarding Dollar General's prospects and business, (ii) artificially inflated the prices of Dollar General's publicly traded securities, (iii) caused plaintiff and other members of the Class to purchase Dollar General publicly traded securities at inflated prices, (iv) allowed the Company to raise $200 million in a debt offering; and (v) allowed defendant Turner and his family to register to sell nearly $300 million worth of their Dollar General Holdings in Structured Yield Product Exchangeable for Stock ("STRYPES") offering. However, on April 30, 2001, the true state of the Company's finances were revealed when the Company announced it was delaying the filing of its annual report on Form 10-K for the fiscal year 2000 in anticipation of restating its audited financial statements for fiscal years 1998 and 1999 as well as restating the unaudited financial information for the fiscal year 2000. Moreover, the Company further disclosed that it had become aware of certain accounting irregularities and as a result, the audit committee of the Company's board of directors is conducting an internal investigation. In response, the stock price of Dollar General plummeted to $16.50, or more than 37% lower than the Class Period high of $26.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Dollar General securities between May 12, 1998, and April 27, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you purchased Dollar General securities during the Class Period, you may, not later than June 29, 2001, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail (FaruqiLawAV@aol.com)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.