Frequently Asked Questions






What was this case about?

On April 7, 2005, the SEC filed its Complaint in this action alleging that from June 16, 1998 through January 14 2002, Dollar General Corporation, Inc. ("Dollar General"), Hurley Calister Turner, Jr., Brian M. Burr, Randy S. Sanderson, and Bobby R. Carpenter (collectively, the "Defendants") defrauded investors by engaging in a scheme to overstate Dollar General's earnings by millions of dollars in violation of the federal securities laws.

Without admitting or denying the allegations in the Commission's Complaint, the Defendants consented to Final Judgments entered by the United States District Court for the Middle District of Tennessee (the "Court") on April 14, 2005 and April 11, 2006 (the "Final Judgments"). As required by those Final Judgments, the Defendants together paid to the Clerk of the Court disgorgement and prejudgment interest of $877,786.17 and civil penalties totaling $11,740,824 (together, the "Dollar General Settlement Funds."). Pursuant to the Final Judgments, the Clerk of the Court deposited the Dollar General Settlement Funds into an interest-bearing account with the Court Registry Investment System ("CRIS"). In addition, on June 29, 2007, the Court ordered the Clerk of the Court to accept and deposit with the Dollar General Settlement Funds, $7,000,000 in funds from International Business Machines Corporation ("IBM") undertaken in a related administrative action.

The Final Judgments provided that the Commission may propose a plan to distribute the Dollar General Settlement Funds pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. On June 29, 2009, the Commission submitted its Motion for Creation of a Fair Fund and Appointment of a Distribution Agent, pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002. On July 2, 2009, the Court granted the Commission's motion and entered an Order Authorizing the Creation of a Fair Fund and Appointing a Distribution Agent (the "Order"). The SEC Fair Fund includes all of the funds the Defendants and IBM paid to the Clerk of the Court pursuant to the Final Judgments, plus accrued interest. The Order also appointed The Garden City Group, Inc. ("GCG") as Distribution Agent to prepare, in consultation with the staff of the SEC, a plan of distribution for the SEC Fair Fund pursuant to which monies in it will be distributed to investors harmed by the violations alleged in the Complaint. The Order also authorizes the Distribution Agent to implement the distribution of the SEC Fair Fund to approved claimants in coordination with the staff of the SEC, pursuant to the Plan of Distribution, subject to oversight by the Court. The Court approved the Plan on October 20, 2010.

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Why did I receive a Claims Packet?

You received a Claims Packet because records indicate you may have bought Dollar General Corporation Securities or sold put options on Dollar General Securities between June 16, 1998 through January 14, 2002 inclusive. "Dollar General Securities" are defined as Dollar General common stock or bonds, or securities that traded in whole or in part based on the price or value of any security issued by Dollar General, including Structured Yield Product Exchangeable for Stock issued on May 21, 1998 by Dollar General STRYPES Trust and exchanged at maturity on May 15, 2001 for Dollar General common stock. The packet you received is designed to notify you of the settlement reached in SEC v. Dollar General Corporation and to inform you that you may be eligible to receive payment from the SEC Fair Fund.

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Who is eligible to participate in the SEC Fair Fund?

You must have (i) purchased Dollar General common stock or bonds, or securities that traded in whole or in part based on the price or value of any security issued by Dollar General, including Structured Yield Product Exchangeable for Stock issued on May 21, 1998 by Dollar General STRYPES Trust and exchanged at maturity on May 15, 2001 for Dollar General common stock ("Dollar General Securities") on dates between June 16, 1998 and January 14, 2002, inclusive, and (ii) retained such Dollar General Securities through the close of the markets on specific dates, depending on the date of purchase, as described in the Plan of Allocation.

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Who is excluded from participation in the SEC Fair Fund?

You are excluded from participation in the SEC Fair Fund if you are:

  • A director or officer, or former director or officer, of Dollar General or any of its past or present Affiliates (as defined in Section 101(2) of the United States Bankruptcy Code, 11 U.S.C. § 101(2)) or any of his or her assigns, creditors, heirs, distributes, spouses, parents, children, or controlled entities who served in such capacity during the Recovery Period;
  • An employee of Dollar General or of any of its past or present Affiliates who has been terminated for cause in connection with the violations alleged in the Commission's Complaint in this action or any related Commission action, or who was otherwise terminated or has resigned in connection with the violations alleged in the Commission's Complaint in this action or any related Commission action (or any of such employee's Affiliates, assigns, creditors, heirs, distributes, spouses, parents, children, or controlled entities);
  • A defendant in any action brought by the Commission or any class action lawsuit related to the conduct described in the Commission's Complaint in this action or any related Commission action (or any of such defendant's Affiliates, assigns, creditors, heirs, distributes, spouses, parents, children, or controlled interests), unless and until such defendant is found not liable in all such civil suits prior to the Claims Bar Date, and proof of the finding(s) is included in such defendant's timely filed Proof of Claim Form;
  • A person who, as of the Claims Bar Date, April 2, 2011, has been the subject of criminal charges related to the violations alleged in the Commission's Complaint in this action or any related Commission action (or any of his or her Affiliates, assigns, creditors, heirs, distributes, spouses, parents, children, or controlled entities);
  • A person who assigned his or her right to obtain a recovery in the Commission's action against Dollar General;
  • An assignee of another person's right to obtain a recovery in the Commission's action against Dollar General, provided, however, this provision shall not be construed to exclude those persons who obtained such a right by inheritance or devise; or
  • GCG or any person(s) or entity assisting it in its role as Distribution Agent.

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What is the amount of the SEC Fair Fund?

The SEC Fair Fund is approximately $19 Million (plus interest earned less costs, expenses and taxes).

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What do I need to do to participate in the SEC Fair Fund?

Unless you were an approved participant in the Dollar General class action settlement identified below, you must complete and submit a Proof of Claim Form, along with the necessary supporting documentation, to the Distribution Agent. The Proof of Claim Form (and supporting documentation) must be received by the Distribution Agent no later than April 2, 2011.

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Do I need to submit a Proof of Claim Form if I was a participant in the Dollar General Class Action?

No. Under the terms of the Distribution Plan for the SEC Fair Fund, Investors whose claims were previously approved in the class action entitled In re Dollar General Securities Litigation, Civil Action No. 3:01-0388 (M.D. Tenn) (WJH) are automatically deemed an Eligible Claimant with respect to the transactions in Dollar General Corporation ("Dollar General") common stock, options, bonds or STRYPES for which a claim was previously approved in the Dollar General Class Action, so long as the approved transactions calculate to an Eligible Loss under the Plan of Allocation for the SEC Fair Fund. See Special Notice to Dollar General Class Action Claimants for further information.

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What do I need to submit with my Proof of Claim Form?

You must document each transaction that you include on your claim form. Acceptable forms of supporting documentation include:

  1. trade confirmation slips from brokerage firms that list the security name, the name of the beneficial owner, the type of transaction, the date of the transaction, the number of shares, the price per share and the total amount of the transaction, OR
  2. monthly statements from brokerage firms that detail all account activity within a month.

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What is the deadline for submitting my Proof of Claim Form?

You must submit your Proof of Claim Form (and the supporting documentation) so that it is postmarked no later than April 2, 2011 and received by the Distribution Agent at the address below:

SEC/Dollar General Fair Fund
c/o The Garden City Group, Inc.
P.O. Box 9513
Dublin, OH 43017-4813

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How will I know when the Proof of Claim Form I submit has been received by the Distribution Agent?

After receipt of your Proof of Claim Form, we will mail you a postcard acknowledging receipt.

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Will I be notified if my Proof of Claim Form is deficient?

Yes. If your Proof of Claim Form is deficient, you will receive a Claim Deficiency Notice setting forth the reason why the claim is deficient and advising you of the opportunity to cure such deficiency.

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Can a financial institution that served as an advisor to numerous clients file Proof of Claim Forms on their behalf? Can we group all our clients together using this method?

Yes, you may file on behalf of all your clients, provided you are authorized to do so and provide us with that valid written authorization. If you would like to file these claims together, you should file electronically. You may file electronically by following the instructions here

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How much money will I receive if my claim is approved?

Until all claims have been processed, it is not possible to determine the amount of any individual payment because the amount will depend on a variety of factors, including the number of valid claims processed, the amount of Dollar General Securities that you purchased, and when you purchased and sold those shares. In addition, in order for a claim to be paid, it must equal or exceed a $10.00. Claims that would result in a payment below that minimum distribution amount will not be paid.

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When will I receive my payment?

Assuming your claim is approved by the Distribution Agent and the Court, it is currently anticipated that any payment to which you are entitled will be mailed approximately eight months after the April 2, 2011 deadline for receipt of Proof of Claims Forms by the Distribution Agent.

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Who is the Distribution Agent?

The Court has appointed The Garden City Group, Inc. to serve as the Distribution Agent.

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Where can I obtain a Distribution Plan Notice and Proof of Claim Form?

You can obtain a Distribution Plan Notice and Proof of Claim Form by either downloading all documents from this website by clicking here or we can mail you these documents if you provide your name and address by clicking here.

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How do I get more information?

You may obtain additional information about the litigation and the SEC Fair Fund by reviewing the content of this website. If you have questions which are not answered by the website, please contact us at the SEC Fair Fund's toll-free hotline at 1(866) 291-4517.

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