Dollar General’s Securities Class Action

Simpson Thacher Obtains Dismissal of Dollar General Securities Class Action

On March 8, 2018, the U.S. District Court for the Middle District of Tennessee (Judge Jack Zouhary) granted Defendants’ motion to dismiss a securities class action complaint against the Dollar General Corporation and certain of its officers. The court held that the complaint, which claimed that Defendants made materially false and misleading statements regarding the anticipated impact on the company of reductions in certain food assistance benefits, failed to plausibly allege actionable misstatements or demonstrate scienter.

Dollar General Corporation operates a chain of discount retail stores located primarily in the southern, southwestern, midwestern, and eastern United States. The company, led by Todd J Vasos, Rob Scruggs and John W Garratt, in 2017 recorded $22 Billion revenues.

The Simpson Thacher team representing Dollar General in this case includes Pete Kazanoff (Picture), David Elbaum, Isaac Rethy and Jennifer Randolph.

Involved fees earner: Peter Kazanoff – Simpson Thacher & Bartlett; David Elbaum – Simpson Thacher & Bartlett; Isaac Rethy – Simpson Thacher & Bartlett; Jennifer Randolph – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Dollar General Corporation;

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Author: Ambrogio Visconti