Dollar General Corporation (NASDAQ: DG)

This lawsuit is for anyone who acquired securities in Dollar General Corporation (NASDAQ: DG) from February 23, 2023 through August 31, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by issuing overly optimistic guidance despite knowing that the Company faced decreasing sales and was overstocked with bad inventory.

On February 23, 2023, Dollar General released its preliminary fourth quarter 2022 and fiscal year 2022 financial results, disclosing that fourth quarter sales and earnings would come in significantly lower than expected due to lower sales and higher inventory damages. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on March 16, 2023, Dollar General released its final fourth quarter 2022 and fiscal year 2022 financial results, revealing that the Company’s net sales had risen on 17.9% year-over-year for the quarter, and only 10.6% year-over-year for the full year. The Company blamed the poor results on a “decrease in customer traffic” as an “impact of store closures.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on June 1, 2023, Dollar General reported disappointing first quarter 2023 financial results with revenue falling $130 million below analyst estimates. Additionally, the Company lowered its fiscal year 2023 earnings forecast, expecting same-store sales to rise between 1% and 2% for the year, a reduction of more than 50% at the midpoint from its prior same-store sales growth forecast of 3% to 3.5%, and that it only expected FY23 sales growth in the range of 3.5% to 5% for the year, down 26% at the midpoint from the prior 5.5% to 6% range provided in March 2023. Further, the Company reported that its EPS were on track to decline by up to 8% year-over-year, not grow by 4% to 6% as previously stated. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on August 31, 2023, Dollar General released its second quarter 2023 financial results, revealing that same-store sales had decreased 0.1%, operating profits decreased 24.2%, and EPS decreased 28.5%. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Dollar General Corporation (NASDAQ: DG) from February 23, 2023 through August 31, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.