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March 08, 2024

Family Dollar to Pay Record Penalty for Unsafe Food and Drug Storage Conditions

Family Dollar has recently been the subject of two different cases involving unsafe storage conditions for food and drug products. In the first matter, consumers brought a class action alleging that Family Dollar improperly stored drugs like caffeine pills and Tylenol outside the required temperature limits, causing the medications to be adulterated and ineffective. Allegedly, instead of destroying the adulterated drugs, Family Dollar continued to sell these products. Moreover, even prior to this class action suit, the FDA inspected a Family Dollar distribution center and cited the company for several “serious violations” of the Food, Drug, and Cosmetic Act. The class action further alleges that Family Dollar ignored these citations and continued using improper storage methods. Cited in the FDA inspection report are temperature excursions, unmonitored and uncontrolled humidity, and a rodent infestation that led to a separate DOJ case against Family Dollar. In the DOJ matter, Family Dollar pleaded guilty to storing food and drug products in unsanitary conditions and agreed to pay a $41.675 million dollar penalty, which is the largest monetary criminal penalty in a food safety case to date. 

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