Arkansas suit against Family Dollar over rat infestation moves forward

LITTLE ROCK, Ark. – The lawsuit between the state of Arkansas and a major dollar store retailer over the infestation of rats and other vermin in a warehouse will move forward in court.

Attorney General Tim Griffin issued a statement Thursday saying that Pulaski County Circuit Court Judge Moran Welch denied a motion to dismiss filed by attorneys representing Family Dollar and the store’s parent company, Dollar Tree, Inc.

The attorney general’s office first filed suit against Family Dollar in April of 2022, claiming the value retailer violated the Arkansas Deceptive Trade Practice Act in connection with a number of cases of infestation of rats at a company warehouse in West Memphis where food items were stored.

The initial filing by state prosecutors stated that an inspection of the West Memphis facility by the U.S. Food and Drug Administration found a dozen different issues and “countless examples of health hazards and failures to protect products from contamination.”

In February of this year, Family Dollar accepted a federal plea agreement that in part saw the company pay a $41 million fine over the infestation issues, as well as admit to holding food, drugs, medical devices and cosmetics in unsanitary conditions in the West Memphis facility.

Griffin welcomed the new decision keeping the state’s case moving ahead, noting that his office will continue to “vigorously pursue” an outcome that would benefit Arkansas consumers.

“Family Dollar knew about the prevalent rodent infestation in its West Memphis distribution center and failed to warn Arkansas consumers that the goods they were purchasing had been exposed to thousands of rodents,” the attorney general said in a release. “I will continue to vigorously pursue this matter to hold Family Dollar accountable for these unconscionable acts.”

Arkansas is seeking a number of penalties against the company, including restitution to shoppers, $10,000 fines for each violation of the ADTPA and a possible suspension of the company’s business license to operate in the state.

Thursday evening, Family Dollar issued a statement on the decision, with a spokesperson noting that the company has already reached a full resolution with the U.S. Department of Justice and rebuilt the West Memphis facility to be “state-of-the-art” & “under new compliance leadership.” The response went on to state that the company believes the claims by Arkansas “are not meritorious.”

Having already reached a full resolution with the U.S. Department of Justice regarding this historic matter, we have fully rebuilt our West Memphis distribution center as a state-of-the art facility, and under new compliance leadership, we have implemented expanded safety and compliance procedures. This recent ruling simply allows the Arkansas Attorney General to try to advance its particular claims in the next phase of litigation. As we have previously stated, Family Dollar believes that these particular claims are not meritorious. Our leadership team is committed to providing safe, quality and effective products to our customers. And we are equally committed to maintaining safe, clean distribution centers and stores that comply with all health and safety regulations. We will continue to work closely with all our West Memphis stakeholders, and with government bodies at all levels, to ensure they feel the full benefit of our new and refreshed presence in the community.

Family Dollar statement

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