Family Dollar reaches settlement in class-action lawsuit

MATTHEWS, N.C. (AP) -- Family Dollar says it has reached a preliminary settlement in a class-action lawsuit from more than 1,700 New York store managers on overtime wages.

The discount store operator said Wednesday that the maximum payment it will make is $14 million, but that settlement terms are not final.

A final settlement between the company and its employees still needs court approval. The process for getting that approval hasn't begun yet.

The Matthews, N.C., company expects to take a charge in its fiscal fourth quarter, which ended in August, for costs related to the lawsuit.

Family Dollar runs more than 7,400 stores throughout the U.S.

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