Haeggquist & Eck, LLP Investigates Potential Misconduct at Dollar General Corp. Concerning the Negative Impact on Financial R...
September 22 2017 - 9:01AM
Business Wire
Haeggquist & Eck, LLP a shareholder rights litigation firm,
announces an investigation of potential corporate misconduct at
discount retailer Dollar General Corporation (“Dollar General” or
the “Company”) (NYSE: DG). The investigation focuses on
representations made by Dollar General executives in the face of a
downturn in available spending by a substantial portion of the
Company’s customer base due to reduced Supplemental Nutrition
Assistance Program (“SNAP”) benefits, particularly during fiscal
2016. These representations have already subjected the Company to a
class action alleging, among other things, violations of the
federal securities laws based upon the adverse impact to Dollar
General’s business in view of the fact that at least 56% of the
Company’s stores were located in states impacted by the reduced
SNAP benefits.
On August 25, 2016, the Company reported fiscal 2016 second
quarter results, including that same-store sales growth would only
be 0.7% due, in part, to reduced SNAP participation rates and
benefits levels. Dollar General’s stock collapsed on the news by
more than 17%, falling to $16.18 per share, and destroying more
than $4 billion in shareholder equity. On December 1, 2016, the
Company was further forced to admit the negative impact to its
third quarter 2016 results due to the SNAP reduction, reporting a
same-store sales decrease of 0.1%. On this news, Dollar General’s
stock declined another $3.84 per share, eliminating another $1
billion in shareholder equity.
Dollar General Shareholders Have Legal Options
Concerned Dollar General shareholders who would like more
information about remedies from the alleged misconduct may contact
attorneys Amber Eck or Kathleen Herkenhoff at 619-342-8000,
ambere@haelaw.com or kathleenh@haelaw.com.
Haeggquist & Eck, LLP is a nationally recognized leader in
shareholder rights and consumer protection law. The firm represents
individual investors in shareholder derivative lawsuits, and
members of the firm have helped shareholders recover more than $1
billion of value for themselves and the companies in which they
have invested.
This release constitutes attorney advertising. Past results do
not guarantee a similar outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20170922005150/en/
Haeggquist & Eck, LLP619-342-8000Amber Eck,
ambere@haelaw.comKathleen Herkenhoff, kathleenh@haelaw.com
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