Dollar General has settled a lawsuit brought by a former employee who claimed that many of the retailer’s higher-ups were intentionally promoting and encouraging coupon fraud. Former employee Cory McNeley filed a federal lawsuit last year, alleging that he was fired from his position at Dollar General for blowing the whistle on a whopping $8 million coupon fraud scheme.
McNeley was employed as a Director of Store Operations in Dollar General’s Goodlettsville, Tennessee headquarters. Among his duties were managing data and investigating criminal wrongdoing within the company. In August 2014, he said he “became aware that Dollar General was submitting fraudulent coupons at an increasing rate.”
He claimed that Dollar General was submitting millions of dollars worth of coupons for redemption when Dollar General staff and managers throughout the company knew that customers were improperly redeeming them.
]Employees would override coupons that were not accepted and enter them manually, or allow “coupon decoding” to allow use of a high value coupon on a smaller product that it was restricted for use with. It’s not just one store, either. He claims he found this behavior at hundreds of Dollar General locations across the United States.
By September 2014, McNeley said Dollar General was “submitting as much as or even more than $8 million worth of fraudulent coupons back to vendors and getting improperly reimbursed for these coupons.” His superior dismissed his concerns, though, because submitting coupons in this way was “in the company’s benefit,” McNeley claimed.
By the time he brought this up, along with other non-coupon related issues, in late 2014, the company chose to fire him. To tell their side of the story, Dollar General claims McNeley was fired for having an inappropriate relationship with a subordinate employee under his direct supervision, and for filing allegedly fraudulent expense reports.
Neither side has retracted claims or admitted any wrongdoing, but they did settle out of court for an undisclosed sum of money. So, we may never know if Dollar General is actively encouraging coupon fraud.
What do you think?
Originally appeared on Coupons in the News