The Family Dollar store faces class-action lawsuits in at least three states due to rat infestation at its distribution center in West Memphis. The customers accused the company of knowing about the rat infestation and the health risks associated with it but remained quiet due to "corporate greed," Action News 5 reported.
The recall came after the Food and Drug Administration (FDA) discovered thousands of rodents inside the plant. Some products shipped to Family Dollar stores in six states, including Tennessee, Arkansas, and Mississippi, may have been contaminated.
Lawsuits filed
Customers filed lawsuits in at least three states. Memphis residents Lakindal Smith and Keith Martin filed a class-action lawsuit against Family Dollar in Virginia due to the sale of contaminated products and "gross negligence."
They detailed that they brought diapers, food, medical devices, cosmetics, food, and dietary supplements for themselves and their families in the store for more than a year. These were some products that were covered by the recall.
The plaintiffs accuse Family Dollar of selling the recalled products despite knowing of the rat infestation and that the products pose a threat to customers' safety at the time of the sale.
Similar class-action suits were also filed in Mississippi and Louisiana last week, seeking to represent all Family Dollar customers in the six states affected by the stores' closure. Damages for the suit range from $75,000 to at least $5 million.
According to Luke Sanderson, the lawyer of Smith and Martin, the rat infestation incident was a "breach of trust," as families rely on Family Dollar for access to clean food, medicine, and cosmetics. The law firm is seeking compensatory and punitive damages, he said.
He added that Family Dollar had disrespected the communities in the area, especially the poor communities that rely on the store more than others.
22-Paged FDA Inspection Report
The infestation details are now coming to light as FDA investigators submitted a 22-paged inspection report. The Family Dollar parent company, Dollar Tree, said the recall of the products and the closure of the stores in various states cost $34 million.
The FDA report indicated that the company was aware of rodents in West Memphis, Arkansas, since January 2020. A fire drill in October 2021 also sent "dozens of rats" scurrying around the facility due to loud sounds, the agency mentioned. The report also noted live and dead rats throughout the facility, rodent gnaw holes on food and pet products, and rodent excreta pellets on personal care items. Inspectors also noted mouse carcass on a pallet and multiple rats climbing up rack scaffolding and through pallet containing food.
Retail expert Neil Saunders finds the situation concerning. He also added that consumers deserve adherence to basic hygiene and safety nets.