Dollar General Understaffed Stores to Its Detriment, Suit Says

Dollar General Corp. saw dramatic revenue shrinkage, steep costs, and state lawsuits and penalties because it understaffed stores and overcharged customers, an investor says in a proposed class action.

Meanwhile, the discount retailer’s then-CEO and chief financial officer cashed out to the tune of $283 million and $31 million in stock sales, respectively, before their departures, the Washtenaw County Employees’ Retirement System says.

The disclosure of disappointing financial results tied to the staffing and pricing problems led to a stock drop of 45%, the pension fund says in its complaint filed Tuesday in the US District Court for the Middle ...