Haeggquist & Eck, LLP Investigates Potential Misconduct at Dollar General Corporation Concerning the Negative Impact on Financial Results Following Reduced SNAP Benefits Available to a Key Portion
SAN DIEGO--(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, firstname.lastname@example.org or email@example.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.
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Source: Haeggquist & Eck, LLP