Tuesday June 12, 1:00 pm Eastern Time
Press Release
Dollar General Charged With Securities Fraud, Says The Pomerantz Firm
INTERNET WIRE -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit against Dollar General Corporation (Dollar General or the "Company") (NYSE: DG - news), the Company's President and Chief Executive Officer-Cal Turner, Jr., and the Company=s former Chief Financial Officer- Brian M. Burr, on behalf of all those persons or entities who purchased the securities of Dollar General during the period between February 23, 1999 through April 27, 2001, inclusive (the "Class Period").
The case was filed in the United States District Court for the Middle District of Tennessee (Nashville Division), located at 801 Broadway, Nashville, TN 37203. The Court may be reached by telephone at (615) 736-5498. The case was filed under Civil Action No. 3-01-0514, and has been assigned to U.S. District Judge Thomas A. Wiseman and Magistrate Judge Joseph B. Brown.
The Complaint alleges that Dollar General, a discount retailer of general merchandise, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by reporting materially false and misleading financial results for fiscal years 1998, 1999 and 2000. As a result, the market price of the Company's securities was artificially inflated throughout the Class Period.
On April 30, 2001, before the market opened, Dollar General issued a press release announcing that the Company "expects to delay the filing of its annual report on Form 10-K for the fiscal year 2000" and anticipated "restating its audited financial statements for fiscal years 1998 and 1999 as well as restating the unaudited financial information for the fiscal year 2000 as previously released" due to accounting irregularities. Dollar General also announced that the Company's audit committee "is conducting an investigation of these irregularities."
Dollar General indicated that it "estimates a reduction in aggregate earnings of approximately $0.07 per share over the three-year period from the previously reported total earnings of $1.81 per share over the same period." The market reaction to this news was dramatic. Dollar General common stock closed at $16.50 that same day, down $7.38, or 31%, from its close on April 27, 2001 at $23.88. The drop in stock price wiped out approximately $2.44 billion in market value.
If you purchased the securities of Dollar General during the Class Period, you have until June 29, 2001 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
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