Dollar General Stock Falls Again. it Isn't Just the New Pricing Lawsuit.

Dow Jones10-27

Discount store Dollar General is billed as a haven from rising inflation. But a new lawsuit claims that it "routinely" overcharges customers.

Filed by the Federal Trade Commission and 20 states, from California to Connecticut, the suit contends that the company charges customers more at the cash register than what is displayed on store shelves, price tags, and ads. "This pattern of inaccurate pricing has persisted for years and affects millions of purchases across the country," the suit says.

The stock was trading down around 4% Friday at $127.94, and Dollar General didn't reply to Barron's request for comment on the suit.

This isn't the discounter's first rodeo over pricing lawsuits. It has settled similar charges in recent years for less than $2 million each, without admitting fault. In the most recent settlement with New York state, announced earlier this month, it agreed to donate $1.875 million to nonprofit organizations.

So chances are this new suit wasn't all that is weighing on Dollar General Monday. It is likely also getting hit by a rotation back into tech stocks following a selloff last week.

Both the Nasdaq and iShares Semiconductor ETF were rising again Monday. Investors had previously rotated out of tech stocks following a filing from Meta that raised concerns about tech spending. Excitement over Anthropic's upcoming public offering are likely fueling that rebound.

 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment