West Memphis, Arkansas – Family Dollar Stores LLC pleaded guilty on Monday to holding consumer products in a warehouse infested with rodents, marking the largest monetary criminal penalty in a food safety case.
The Department of Justice announced the guilty plea, revealing that the company admitted to storing food, drugs, medical devices, and cosmetics in unsanitary conditions due to a rodent infestation at their distribution center in West Memphis, Arkansas. The company agreed to pay $41.675 million as part of the plea agreement.
Acting Associate Attorney General Benjamin C. Mizer emphasized the importance of ensuring that products in stores are kept in clean and uncontaminated conditions for consumers. The Justice Department held Family Dollar accountable for violating these laws designed to protect consumers.
As part of the plea agreement, Family Dollar and Dollar Tree are required to comply with strict corporate governance and reporting standards for the next three years. U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas condemned Family Dollar for knowingly shipping unsafe and insanitary products despite being aware of rodent issues at their distribution center.
The company confessed that its Arkansas facility distributed FDA-regulated products to over 400 Family Dollar stores across various states, including Alabama, Missouri, Mississippi, Louisiana, Arkansas, and Tennessee. Reports of mouse and pest problems surfaced in August 2020, with certain stores receiving rodent-related issues by the end of the year.
An FDA inspection in January 2022 uncovered live rodents, decaying rodents, feces, urine, odors, and evidence of gnawing throughout the facility. Following the inspection, the warehouse underwent fumigation resulting in the extermination of 1,270 rodents.
In response to the findings, Family Dollar voluntarily recalled all affected products sold since January 1, 2021, in the 404 stores serviced by the contaminated warehouse. The company’s admission of guilt and subsequent actions to address the situation aimed to restore consumer trust in the safety of the products they purchase.