NEW YORK, Jan. 20, 2017 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Dollar General Corporation (“Dollar General” or the “Company”) (NYSE:DG) of the March 20, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Middle District of Tennessee on behalf of all those who purchased Dollar General stock or options between March 10, 2016 and November 30, 2016 (the “Class Period”). The case, Iron Worker Local Union No. 405 Annuity Fund v. Dollar General Corporation et al, No. 17-cv-00063 was filed on January 18, 2017, and has been assigned to Judge Kevin H. Sharp.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to appropriately disclose how announced limitations on Supplemental Nutrition Assistance Program (“SNAP”) benefits would have a material impact on the Company's financial performance.
Initially, on August 25, 2016, the Company announced disappointing second quarter 2016 financial and operational results caused by “a reduction in both SNAP participation rates and benefit levels.” After the announcement, Dollar General’s share price fell from $91.79 per share on August 24, 2016 to a closing price of $75.61 on August 25, 2016 —a $16.18 or a 17.63% drop.
Then, on December 1, 2016, Dollar General announced third quarter 2016 financial and operational results that included a reduction in same-store sales. The Company cited reductions in SNAP benefits as a major contributor of the disappointing results, and admitted that the benefit reductions “affect[] about 56% of our store base . . . And those states that have had the reduction or elimination, they are approximately 100-basis-point worse in comp. That gives you a real good idea of how impactful those SNAP benefits reductions have been.” After the announcement, Dollar General’s share price fell from $77.32 per share on November 30, 2016 to a closing price of $73.48 on December 1, 2016—a $3.84 or a 4.97% drop.
Request more information now by clicking here: www.faruqilaw.com/DG. There is no cost or obligation to you.
Take Action
If you invested in Dollar General stock or options between March 10, 2016 and November 30, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/DG. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Dollar General’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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