Dec. 17, 2012 (Shareholders Foundation) -- An investigation on behalf of current long term stockholders in shares of Family Dollar Stores, Inc. (NYSE:FDO) was announced concerning potential breaches of fiduciary duties by certain directors of Family Dollar Stores, Inc. in connection with the Employee Stock Purchase Plan.

The investigation by a law firm concerns whether certain directors potentially breached their fiduciary duties in connection with their conduct in seeking shareholders approval for the adoption of an Employee Stock Purchase Plan.

In the Proxy Statement filed by Family Dollar Stores, Inc. with the Securities and Exchange Commission the Board of Directors recommends that Family Dollars shareholders vote to approve the adoption of an Employee Stock Purchase Plan. The Board of Directors has reserved an aggregate of 1,000,000 shares of Company common stock for issuance under the Purchase Plan.

According to the investigation the issuance of the additional shares could have a substantial dilutive effect on the shares of Family Dollar common stock.

Family Dollar Stores, Inc. (NYSE:FDO) reported that its Total Revenue rose from over $8.54 billion for the 52 weeks period that ended on August 27, 2011 to over $9.33 billion for the 52 weeks period that ended on August 25, 2012 and its Net Income over the respective time periods increased from $388.44 million to $422.24 million.
Shares of Family Dollar Stores, Inc. (NYSE:FDO) grew from $41.51 per share in February 2011 to as high as $73.26 per share in June 2012.

The total compensation of certain top officials increased between 2011 and 2012. For instance, the Chairman of the Board and CEOs pay rose from over $4.74 million in 2011 to over $5.22 million in 2012 and the Vice Chair, Strategy and CAOs pay increased from over $1.12 million in 2011 to over $1.48 million in 2012.