Family Dollar Is Fined $41.7 Million Over Rodent-Infested Warehouse

The value-store chain Family Dollar was fined $41.7 million, the largest-ever financial criminal penalty in a food safety case, for distributing food, drugs, medical devices and cosmetics from a rat-infested warehouse, the Justice Department said.

On Tuesday, Family Dollar pleaded guilty in federal court in Little Rock, Ark., to one misdemeanor count of holding products in unsanitary conditions, causing them to become adulterated. The $41.675 million penalty is estimated to be the value of the products that were tainted when stored in unsanitary conditions, according to the plea agreement.

The distribution center in West Memphis, Ark., according to court documents, serviced 404 Family Dollar stores in six states: Alabama, Missouri, Mississippi, Louisiana, Arkansas and Tennessee.

Family Dollar is a subsidiary of Dollar Tree, a rapidly growing retail giant that operates more than 16,000 stores across the United States and Canada.

Family Dollar temporarily closed stores in 2022 because of the infestation. The stores were closed for a few weeks but have all reopened since, said Kristin Tetreault, a spokeswoman for Dollar Tree.

The rats had “established a presence” at the warehouse in July 2021, according to the plea agreement. The rats used an abandoned conveyor system to run freely throughout the facility.