Attorney General Tim Griffin announced Thursday that Arkansas has reached a $5.5 million settlement with Family Dollar and Dollar Tree entities following a consumer protection lawsuit tied to a rat infestation at a West Memphis distribution center.
According to Griffin, Arkansas will receive $3.9 million under the agreement, while $1.6 million will be suspended because of Family Dollar’s cooperation with federal investigators.
The lawsuit was originally filed in April 2022 after investigators discovered severe rodent infestations inside a Family Dollar distribution warehouse in West Memphis.
Federal officials with the U.S. Food and Drug Administration determined the facility had experienced a rat infestation since at least 2020. Investigators reported more than 3,400 rodents were removed from the warehouse between March 2021 and January 2022.
Authorities said products from the facility were distributed to all 85 Family Dollar stores in Arkansas along with stores in 5 additional states before the FDA issued a public safety alert and supervised a large-scale product recall.
Arkansas sued Family Dollar for alleged violations of the Arkansas Deceptive Trade Practices Act along with negligence, strict liability, failure to warn consumers, and unjust enrichment claims.
In 2024, Family Dollar Stores LLC entered a guilty plea in federal court connected to the infestation investigation and agreed to more than $41 million in fines and forfeitures.
Griffin said Arkansas consumers deserve products that are “safe, lawfully sold, and honestly marketed,” especially families relying on neighborhood discount stores for everyday items.
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