Family Dollar faces lawsuits alleging contaminated, damaged products

Family Dollar can’t seem to distance itself from lawsuits dealing with contaminated or damaged products. 

The Charlotte, N.C.-based retailer, which is owned by Dollar Tree, is facing a multidistrict lawsuit claiming a distribution center in Arkansas was infested with rats that may have affected products delivered to stores in six states. On Wednesday, another lawsuit was filed in a federal court in Miami by two shoppers complaining that Family Dollar sold personal care products and over-the-counter medicines which were stored at high temperatures or in humid conditions, reports Reuters. 

Gregg Morrison and Kenneth Johnson are accusing Family Dollar of selling products like anti-perspirant and caffeine pills at stores in Florida and Georgia that were tainted. 

The lawsuit refers to a 2022 U.S. Food and Drug Administration (FDA) report that revealed rat infestations and improper temperature controls at the Arkansas distribution facility, and that Family Dollar continued to stock products which were not safe beginning as early as May 2022. 

The lawsuit also points out that Family Dollar issued five voluntary recalls in 2022 and 2023. 

Both Morrison and Johnson, who are seeking compensatory and punitive damages, want to represent a nationwide class of Family Dollar customers in addition to statewide classes of shoppers in Georgia and Florida. 

“We believe Family Dollar profited from peddling unsafe products at a discount to people who had no other options,” said Steve Berman of Hagens Berman, who is one of the attorneys representing the Georgia and Florida consumers. 

Dollar Tree said in a statement it is committed to providing safe and effective products and to complying with all applicable laws and regulations, including product storage. 

U.S. District Judge Sheryl Lipman in Memphis approved a settlement in the multidistrict lawsuit. A final approval hearing will take place on April 5. 

As part of the settlement Family Dollar has agreed to award $25 gift cards to households with approved claims.