The Capital

Family Dollar fined $41.7M over rat-infested warehouse

- By Rebecca Carballo

The value-store chain Family Dollar was fined $41.7 million, the largest-ever financial criminal penalty in a food safety case, for distributi­ng food, drugs, medical devices and cosmetics from a rat-infested warehouse, the Justice Department said.

On Tuesday, Family Dollar pleaded guilty in federal court in Little Rock, Arkansas, to one misdemeano­r count of holding products in unsanitary conditions, causing them to become adulterate­d. The $41.675 million penalty is estimated to be the value of the products that were tainted when stored in unsanitary conditions, according to the plea agreement.

The distributi­on center in West Memphis, Arkansas, according to court documents, serviced 404 Family Dollar stores in six states: Alabama, Arkansas, Louisiana, Mississipp­i, Missouri and Tennessee.

Family Dollar is a subsidiary of Dollar Tree, a retail giant that operates more than 16,000 stores across the United States and Canada.

Family Dollar temporaril­y closed stores in 2022 because of the infestatio­n. The stores were closed for a few weeks but have all reopened, said Kristin Tetreault, a spokespers­on for Dollar Tree.

The rats had “establishe­d a presence” at the warehouse in July 2021, according to the plea agreement. An employee filed a complaint with the Occupation­al Safety and Health Administra­tion, and in August 2021, one of the company’s regional regulatory compliance specialist­s said the rodent problem was “very noticeable.”

In 2022, inspectors from the Food and Drug Administra­tion observed “live rodents, dead rodents in varying states of decay, rodent feces and urine, and evidence of gnawing, nesting, and rodent odors throughout the facility, in addition to dead birds and bird droppings,” according to the plea agreement in the case.

“It is incomprehe­nsible that Family Dollar knew about the rodent and pest issues at its distributi­on center in Arkansas but continued to ship products that were unsafe and insanitary,” said Jonathan Ross, the U.S. attorney for the Eastern District of Arkansas.

As many as 1,270 rodents were exterminat­ed when the warehouse was fumigated in January 2022, federal officials said.

On Feb. 18, 2022, the company voluntaril­y recalled all drugs, medical devices, cosmetics, and human and animal food products sold since Jan. 1, 2021, in the 404 stores that had been serviced by the infested warehouse, the Department of Justice said.

The plea agreement requires Family Dollar and Dollar Tree to meet “robust” corporate compliance and reporting requiremen­ts for the next three years.

Before the Family Dollar case, the Mexican restaurant chain Chipotle had been issued the largest fine in a food-safety case when it was ordered to pay $25 million for its role in an outbreak of foodborne illness that sickened more than 1,100 people between 2015 and 2018.

 ?? AUDRA MELTON/THE NEW YORK TIMES 2023 ?? A Family Dollar store in Stone Mountain, Georgia. The chain pleaded guilty Tuesday in Arkansas to holding products in unsanitary conditions.
AUDRA MELTON/THE NEW YORK TIMES 2023 A Family Dollar store in Stone Mountain, Georgia. The chain pleaded guilty Tuesday in Arkansas to holding products in unsanitary conditions.

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