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Dollar General Settles; CFO Departs

Finance chief joined the company only seven weeks before it announced it would restate results.
Stephen TaubMarch 17, 2004

Discount retailer Dollar General announced that it has settled charges by the Securities and Exchange Commission regarding the restatement of its 1998 and 1999 financials and certain unaudited financial information for fiscal year 2000.

The company added that chief financial officer James Hagan will be leaving after a transition period.

Dollar General agreed to a $10 million civil penalty to settle the investigation into the restatement, without admitting or denying the SEC’s allegations. The agreement is subject to final approval by the commission and the court.

Hagan joined the company in March 2001, seven weeks before Dollar General announced its need to restate results, and according to the Associated Press was not involved in the preparation of the recently restated financial reports.

“Jim Hagan has provided invaluable service and leadership to Dollar General during some very difficult times,” said chairman and CEO David Perdue, in a statement. Said Hagan, “The announcement of the proposed settlement with the SEC presents the right time for me to close this chapter of my career.”