In a groundbreaking legal development, Family Dollar Stores LLC, a subsidiary of Dollar Tree Inc., has pleaded guilty to storing food, drugs, medical devices, and cosmetics under unsanitary conditions due to a severe rodent infestation at its West Memphis, AR, distribution center. The guilty plea comes with a staggering $41.675 million fine, marking the largest-ever monetary criminal penalty in a food safety case.

The criminal information revealed a misdemeanor charge of causing FDA-regulated products to become adulterated while being held under insanitary conditions. The plea agreement also mandates Family Dollar and Dollar Tree to adhere to rigorous corporate compliance and reporting requirements for the next three years.

U.S. Magistrate Judge Jerome T. Kearney oversaw the guilty plea and sentencing, emphasizing the public’s right to expect safe and uncontaminated products on store shelves. Acting Associate Attorney General Benjamin C. Mizer assured the public that the Justice Department would hold companies accountable for violating consumer trust and endangering public health.

U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas condemned Family Dollar’s actions, highlighting the company’s knowledge of rodent issues at its distribution center while continuing to ship unsafe products. The plea agreement revealed that reports of mouse and pest problems surfaced in August 2020, with some stores receiving rodents and rodent-damaged products by the end of the year.

Despite the awareness of unsanitary conditions, the company continued shipping FDA-regulated products until January 2022. An FDA inspection that month uncovered live rodents, decaying rodents, rodent feces, urine, and evidence of gnawing and nesting throughout the facility. The subsequent fumigation resulted in the reported extermination of 1,270 rodents.

To address the extensive risk, Family Dollar voluntarily recalled all drugs, medical devices, cosmetics, and food products sold since January 1, 2021, in the 404 stores serviced by the contaminated warehouse.

The Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) conducted the investigation, and the prosecution team, led by Senior Litigation Counsel Patrick Runkle and Trial Attorney Alisha Crovetto, emphasized the importance of holding companies accountable for putting public health at risk.

This record-breaking penalty sends a clear message that companies neglecting the safety and sanitary conditions of their products will face severe consequences, reaffirming the commitment to consumer protection and public health.

For more information about the Consumer Protection Branch and its enforcement efforts click on www.justice.gov/civil/consumer-protection-branch.