Faruqi & Faruqi, LLP Encourages Investors Who Suffered Substantial Losses
Investing In Family Dollar Stores, Inc. To Contact The Firm
NEW YORK, Feb. 22, 2013
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).
(Logo: http://photos.prnewswire.com/prnh/20120119/MM38856LOGO )
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.
Request more information now by clicking here:
www.faruqilaw.com/FamilyDollar. There is no cost or obligation to you.
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 firstname.lastname@example.org email@example.com.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Family
Dollar's conduct to contact the firm, including whistleblowers, former
employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is
Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or
predict a similar outcome with respect to any future matter. We welcome the
opportunity to discuss your particular case. All communications will be
treated in a confidential manner.
FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP
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