Arkansas reaches $5.5 million settlement with Family Dollar over rat infestation

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Tim Griffin announced Thursday that Arkansas has reached a $5.5 million settlement with Family Dollar following a lawsuit tied to a rat infestation at a distribution center in West Memphis.

According to Griffin, the state will receive $3.9 million under the settlement, while $1.6 million was suspended because of the company’s cooperation with the U.S. Department of Justice.

The lawsuit was filed in April 2022 after officials said Family Dollar knowingly operated a distribution warehouse infested with thousands of rats while continuing to ship consumer goods to stores in Arkansas and five other states.

A 2022 investigation by the U.S. Food and Drug Administration found more than 3,400 rodents were removed from the facility between March 2021 and January 2022.

The FDA later issued a public safety alert and product recall connected to items shipped from the warehouse.

Griffin’s office sued the company for alleged violations of the Arkansas Deceptive Trade Practices Act. Family Dollar later entered a guilty plea in federal court that included an additional $41 million fine and forfeiture.

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