Family Dollar 2013 Annual Report Download - page 65

Presently, there are a total of 25 named plaintiffs and/or opt-ins in the remaining cases in the MDL, for which the
N.C. Federal Court has not decided the class certification or summary judgment issue.
State Law Class and Collective Actions
The Company is currently a defendant in six additional class action lawsuits in six states alleging that Store
Managers should be non-exempt employees under various state laws. The plaintiffs in these cases seek recovery
of overtime pay, liquidated damages, attorneys’ fees, and court costs. Of these six cases, Family Dollar has
defeated class certification in one of the cases, one of the cases is preliminarily resolved, one of the cases is
currently certified as a class action, and the other three cases are in the early stages of litigation.
•Cook, et al. v. Family Dollar Stores of Connecticut, Inc., was filed in Superior Court in the State of
Connecticut on October 5, 2011, seeking unpaid overtime for a class of current and former Connecticut
Store Managers for alleged violations of the Connecticut Minimum Wage Act. In December 2012,
briefing on class certification was completed. On March 19, 2013, the Court denied the plaintiffs’
motion for class certification. The Company filed individual summary judgment motions as to each of
the three named plaintiffs. On May 23, 2013, the Court denied the Company’s summary judgment
motion as to Cook, and has not ruled on the remaining plaintiffs. There is no trial date currently set for
any of the individual plaintiffs.
•Farley, et al. v. Family Dollar Stores of Colorado, Inc., was filed in the United States District Court for
Colorado on January 7, 2012, seeking unpaid overtime compensation for a class of current and former
Colorado Store Managers. On March 21, 2013, the district court granted plaintiff’s motion for class
certification. Class notice was issued in June 2013. Class discovery concludes in December 2013. The
final pre-trial hearing is currently scheduled for February 2014.
•Hegab v. Family Dollar Stores, Inc., was filed in the United States District Court for the District of
New Jersey on March 3, 2011. Plaintiff seeks recovery for himself and allegedly similarly situated
Store Managers under New Jersey law. Currently, this matter is administratively dismissed without
prejudice, and no class has been certified. Despite the current procedural status, the counsel for the
class has indicated he intends to pursue the case.
•Itterly v. Family Dollar Stores of Pennsylvania, Inc., which was formerly pending in the N.C. Federal
Court, was remanded back to the United States District Court for the Eastern District of Pennsylvania
on February 8, 2012. Plaintiffs are seeking unpaid overtime for a class of current and former
Pennsylvania Store Managers whom plaintiffs claim are not properly classified as exempt from
overtime pay under Pennsylvania law. Discovery closed in June 2012. The Company has a pending
motion for summary judgment before the Court.
•Premo v. Family Dollar Stores of Massachusetts, Inc., was filed in Worcester County Superior Court in
the State of Massachusetts for alleged violations of the Massachusetts overtime law on April 26, 2013.
Plaintiffs are seeking unpaid overtime for a class of current and former Massachusetts Store Managers
whom plaintiffs claim are not properly classified as exempt from overtime under Massachusetts law.
The Company removed the case to federal district court in Massachusetts on May 28, 2013. Plaintiffs
have challenged the removal to federal court. The Court has not made a final ruling on this issue.
•Walters et. al. v. Family Dollar Stores of Missouri, Inc., alleging violations of the Missouri Minimum
Wage Law, was originally filed on January 26, 2010, and is pending in the Circuit Court of Jackson
County, Missouri (the “Circuit Court”). On May 10, 2011, the Circuit Court certified the class under the
Missouri Minimum Wage Law and common law. The Company appealed the class certification ruling,
but neither the Missouri Court of Appeals nor the Missouri Supreme Court agreed to hear the appeal. In
July 2013, the parties entered a preliminary agreement to resolve this matter on a claims-made basis for a
maximum of $2.5 million. All deadlines have been stayed pending finalizing this preliminary agreement.
A hearing for preliminary approval of the settlement is currently set for November 7, 2013.
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