Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
In a recent development, a family from North Carolina has filed a lawsuit against retail giant Dollar Tree Inc. (NASDAQ:DLTR) and Florida-based applesauce producer WanaBana. The family alleges that their children suffered lead poisoning from applesauce pouches sold by the companies.
What Happened: The Hill reported that the lawsuit was filed by the South Carolina-based law firm Motley Rice in Florida’s 11th Judicial Circuit, which includes Miami-Dade County, the corporate headquarters of WanaBana,
The parents claim that their children developed lead poisoning after consuming the applesauce pouches, which will require lifelong treatment. The lawsuit alleges that the companies were aware of the products’ dangers and unreasonably exposed consumers to a severe risk of lifelong injury.
As of Jan. 26, 2024, the Centers for Disease Control and Prevention (CDC) had received 404 reports from 43 states of possible lead poisoning due to the fruit pouches. Nearly 100 cases were confirmed, 269 were probable, and 37 were suspected.
The affected pouches were sold under the WanaBana brand at Dollar Tree stores and online and under the Schnucks and Weis brands in stores. The CDC has since issued a warning to consumers to dispose of any remaining pouches and seek medical advice if they have consumed them.
Why It Matters: The lawsuit comes at a time when Dollar Tree has been under scrutiny for its product safety measures. This incident could potentially impact the company’s reputation and financial standing.
Earlier in 2023, Dollar Tree’s shares were on the rise after the company’s quarterly results suggested market share gains at both its banner stores. However, the company’s product safety issues could potentially reverse this trend.
Meanwhile, analysts have been closely monitoring Dollar Tree’s performance. In the last quarter, the company’s stock underwent analysis by nine analysts, revealing a spectrum of viewpoints from bullish to bearish. The current lawsuit and its potential impact on the company’s reputation could further influence analysts’ ratings and the company’s stock performance.
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