In Re: Family Dollar Stores, Inc., Pest Infestation Litigation

Case Background

On June 2, 2022, a class action lawsuit was filed against Family Dollar in the United States District Court for the Western District of Tennessee (2:22md3032). The case was assigned to Chief Judge Sheryl H. Lipman and referred to Chief Magistrate Judge Tu M. Pham. The lawsuit arose from the severe rodent infestation at Family Dollar’s distribution center in West Memphis, Arkansas, which led to widespread product contamination.

Cause

Family Dollar operated a distribution center in West Memphis, Arkansas, which supplied products to 404 stores across six states: Tennessee, Mississippi, Louisiana, Alabama, Missouri, and Arkansas. Starting in January 2020, Family Dollar became aware of a severe rodent infestation at this facility but failed to take adequate steps to address the issue. Between January 11 and February 11, 2022, FDA inspectors conducted multiple visits and uncovered alarming evidence of widespread product contamination.

They found live and dead rodents in various states of decay, along with rodent feces, urine, gnaw marks, and nesting materials throughout the warehouse. Products stored at this facility—such as human food, pet food, over-the-counter medications, cosmetics, and medical devices—showed signs of rodent contamination. Despite knowing about these hazardous conditions, Family Dollar continued distributing these contaminated products without disclosing the health risks to consumers. As a result, the company faced a temporary closure of its distribution center and a recall of FDA-regulated products in February 2022.

Injuries

The contaminated products posed serious health risks to consumers. Many individuals unknowingly purchased and used these products, exposing themselves to unsanitary conditions. The risk of Salmonella infection was particularly significant. Symptoms, including fever, diarrhea, nausea, and abdominal pain, were especially dangerous for children, the elderly, pregnant women, and those with weakened immune systems. Consumers who handled or consumed these products were also at risk of diseases like Hantavirus Pulmonary Syndrome, Leptospirosis, and Rat-Bite Fever, all of which are transmitted through contact with rodent waste. The health hazards extended beyond food items, as personal care products, cosmetics, and medical devices also became contaminated.

Damages

Plaintiffs suffered substantial financial and emotional damages due to Family Dollar’s negligence. They paid for contaminated products that were unfit for use and posed health hazards. Many consumers had already used or consumed these products before the recall was issued, putting their health at significant risk. Plaintiffs also incurred financial losses as they had to discard products without receiving refunds. The recall process was flawed, requiring consumers to return contaminated items to specific stores. However, many of these stores were temporarily closed due to the rodent infestation. Plaintiffs also faced additional expenses replacing contaminated household items and endured emotional distress over the potential health risks to themselves and their families.

Key Arguments and Proceedings

Legal representation

  • Plaintiff(s):In Re. Family Dollar Stores, Inc., Pest Infestation Litigation
    • Counsel for Plaintiff: Charles Foose Barrett | Brendan Thompson | Charles LaDuca | Gary McKay Yarborough, Jr | J. Gerard Stranch, IV | Sarah Sterling Aldridge | Steven A. Martino | Joseph Stewart Dennis | Tiffany Ray | Gregory W. Aleshire | James D. Robertson | Jerry D. Garner | Robert Shelquist
    • Experts for Plaintiff(s): Joseph Jonovich | Regina Barrell | Dr. Jamie Childs | Bobby Calder, Ph.D | Colin B. Weir
  • Defendant(s): Family Dollar Inc. | Dollar Tree Stores, Inc. | Family Dollar, Inc., a North Carolina Corporation | Family Dollar Stores of Arkansas LLC
    • Counsel for Defendants: Christopher Chorba | Daniel W. Van Horn | Lana Alcorn Olson | Amanda J. Sterling | Amaobi Joseph Enyinnia | Catherine McCaffrey | Derek Kraft | Jason Meltzer | Jeff P. Doss | Jesenka Mrdjenovic | Kathryn Van Namen | Rachil K. Davids | Marshall Ney | P. Ryan Beckett | Katherine Church Campbell | Lewis Franklin Powell, III | Thomas Richard Waskom
  • Intervenor: Arkansas Attorney General, State of Arkansas, ex rel. Tim Griffin, Attorney General
    • Counsel for Intervenor:Brittany Edwards | Katherine Donoven | Rachel Kluender

Claims

Plaintiffs asserted that Family Dollar engaged in deceptive trade practices by concealing the rodent infestation and the resulting product contamination. They accused the company of failing to maintain proper pest control measures and distributing unsafe products. These actions violated consumer protection laws and breached Family Dollar’s duty to provide safe, uncontaminated products. Plaintiffs sought compensatory damages for financial losses, medical expenses, and emotional distress. They also demanded punitive damages to hold Family Dollar accountable for its reckless conduct. Additionally, they requested injunctive relief, which included mandatory improvements to pest control measures and full disclosure of potential health hazards to consumers.

Defense

Family Dollar contended that it took reasonable and timely steps to address the rodent infestation at its West Memphis distribution center. The company argued that after the FDA’s inspection, it halted distribution operations and voluntarily recalled FDA-regulated products to protect consumer safety. Family Dollar claimed full cooperation with the FDA’s investigation and adherence to regulatory guidelines for product recalls. The company asserted that it hired professional exterminators and implemented extensive pest control measures, including fumigation and the removal of over 1,100 rodent carcasses, to restore sanitary conditions.

Family Dollar also argued that its recall notice provided sufficient guidance to consumers for returning affected products. The company emphasized offering refunds without requiring purchase receipts and reopening stores only after confirming compliance with health and safety standards. Family Dollar contended that any remaining contamination risks were speculative, claiming that many products, such as those in sealed metal or glass containers, remained safe for consumer use when properly cleaned and sanitized. It denied any allegations of fraud, negligence, or deceptive practices, asserting that it met its obligations to provide safe products and acted responsibly in response to the rodent infestation.

Expert Testimony

Plaintiffs presented several expert witnesses. Joseph Jonovich of Technical Pest Solutions testified about the severe rodent infestation and contamination at the West Memphis distribution center. He detailed findings from investigations by the FDA and the Arkansas Department of Health (ADH). Regina Barrell from FDA Compliance Group LLC discussed the rodent contamination and how Family Dollar’s practices compared to FDA regulations for storing and distributing consumer products. Dr. Jamie Childs from Yale University explained the health risks associated with rodent contamination, particularly the potential exposure to life-threatening diseases. Bobby Calder, Ph.D., from Northwestern University discussed consumer purchasing behavior, emphasizing that consumers would not knowingly buy contaminated products. Finally, Colin B. Weir from Economics and Technology, Inc. provided a damages analysis, quantifying the economic losses that consumers incurred from purchasing and discarding contaminated goods.

Settlement

Family Dollar agreed to pay $1.125 million to the State of Tennessee as part of a settlement related to the rodent-infested warehouse in Arkansas. This payment was part of a broader $41.675 million fine that the company agreed to under a plea agreement with the Department of Justice.

 Court Documents:

Documents are available for purchase upon request at jurimatic@exlitem.com