Dollar Tree discloses federal grand jury subpoena over pest issue
11:50 am Tuesday, March 15th, 2022
(Reuters) – Dollar Tree Inc said on Tuesday the Eastern District of Arkansas issued a federal grand jury subpoena related to a pest and sanitation problem, a month after U.S. health regulators identified a contamination issue at its Family Dollar division.
Rodent activity and Salmonella contamination at a Family Dollar distribution center in Arkansas recently led to a recall of drugs, cosmetics, human and animal foods from 404 stores in six U.S. states, including Alabama, Arkansas and Louisiana.
Dollar Tree said earlier this month it incurred a $34.1 million hit due to the recall.
Rodent contamination may cause Salmonella and infectious diseases, which may pose the greatest risk to infants, children, pregnant women, the elderly and immuno-compromised people, the U.S. Food and Drug Administration said last month.
The FDA also said conditions observed during the inspection of the facility included live rodents and dead rodents in various states of decay.
A review of Dollar Tree’s internal records also indicated the collection of more than 2,300 rodents between March 29 and Sept. 17, demonstrating a history of infestation, the health agency added.
Dollar Tree’s regulatory filing on Tuesday showed the Eastern District of Arkansas requested the production of information, documents and records pertaining to pests, sanitation and its compliance with law.
The grand jury subpoena is a powerful investigative tool of the federal government used to identify and gather evidence about a certain federal crime.
“We intend to cooperate fully with the subpoena and any related investigation, however, no assurance can be given as to the timing or outcome of this matter,” Dollar Tree said in the filing.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Maju Samuel)
