Family Dollar Stores LLC has been ordered to pay a fine of $41.675 million after pleading guilty to charges related to unsanitary conditions caused by a rodent infestation at its distribution center in West Memphis, Arkansas. The company, a subsidiary of Dollar Tree Inc., admitted to holding food, drugs, medical devices, and cosmetics in conditions that violated federal regulations, resulting in the adulteration of FDA-regulated products.
The guilty plea, entered in federal court in Little Rock, Arkansas, included a misdemeanor charge of causing FDA-regulated products to become adulterated due to unsanitary conditions. This marks the largest-ever monetary criminal penalty in a food safety case. As part of the plea agreement, Family Dollar and Dollar Tree are required to comply with stringent corporate compliance and reporting standards for the next three years. U.S. Magistrate Judge Jerome T. Kearney oversaw the plea and sentencing proceedings.
Acting Associate Attorney General Benjamin C. Mizer emphasized the importance of maintaining clean and uncontaminated conditions for consumer goods, stating that the Justice Department would hold companies accountable for violating trust and endangering public safety.
Principal Deputy Assistant Attorney General Brian M. Boynton reiterated the obligation of companies to ensure the safety and sanitation of products distributed and sold to consumers. U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas condemned Family Dollar’s actions, emphasizing that knowingly selling unsafe products undermines public trust and puts consumers’ health at risk.
Special Agent in Charge Charles L. Grinstead of the FDA’s Office of Criminal Investigations highlighted the commitment to prosecuting companies that disregard public health by distributing products under unsanitary conditions.
The company admitted to shipping FDA-regulated products to over 400 Family Dollar stores across several states, despite being aware of rodent issues since August 2020. By January 2021, employees were cognizant of the unsanitary conditions leading to product adulteration. Despite this knowledge, shipments continued until January 2022 when an FDA inspection revealed severe rodent infestation and unsanitary conditions at the distribution center. Subsequent fumigation resulted in the extermination of 1,270 rodents.
In response, Family Dollar voluntarily recalled all affected products sold since January 2021 in the stores serviced by the warehouse. The FDA-OCI conducted the investigation, and the case was prosecuted by Senior Litigation Counsel Patrick Runkle, Trial Attorney Alisha Crovetto of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorneys Julie Peters and Cameron McCree for the Eastern District of Arkansas.
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