Case Details

Year Initiated/Committed

2015

Year Resolved

2015

Settlement Amount

$865,000 attorneys' fees and costs

Court

United States District Court for the District of Columbia

Docket Number

1:15-cv-01052

Lead State

AL, FL, IA, IN, MA, MD, ME, MO, MS, NE, OK, PA, TN, UT, VA, VT, WV

Participating States

AL, FL, IA, IN, MA, MD, ME, MS, NE, OK, PA, TN, UT, VA, VT, WV

Defendant(s)

Dollar Tree, Inc.; Family Dollar Stores, Inc.

Case Description

Eighteen plaintiff states and the FTC challenged the merger of Dollar Tree, the largest chain of “dollar” stores (deep discount stores) and Family Dollar Stores, the nation’s third largest dollar store chain. The complaint claimed the proposed acquisition would substantially lessen competition in numerous markets by: (1) eliminating direct and substantial competition between Dollar Tree and Family Dollar; and (2) increasing the likelihood that Dollar Tree will unilaterally exercise market power. This, according to the complaint, would violate Section 7 of the Clayton Act and each state’s applicable antitrust and consumer protection laws. The states sought a permanent injunction to prevent the merger, along with costs and attorney fees. The parties reached a settlement under which 330 stores in the 18 states would be divested to Sycamore partners and run as a new dollar store chain, Dollar Express. The agreement also required the defendants to report future acquisitions in any of the affected markets and to pay over $865,000 to reimburse the costs and fees of the plaintiff states.