Dollar Tree is facing a new federal class-action lawsuit accusing the Chesapeake-based retailer of charging customers higher prices to cover tariffs that were later ruled unlawful — and then keeping the refunds it received from the federal government.
The lawsuit was filed Sept. 3 in the U.S. District Court for the Eastern District of Virginia by 10 Dollar Tree customers from across the country.
The case has a significant local connection: Dollar Tree, Dollar Tree Stores, Dollar Tree Sourcing Company and Greenbrier International, the defendants, all have their principal places of business at Dollar Tree’s headquarters on Volvo Parkway in Chesapeake. The lawsuit also says decisions about passing tariff costs on to customers and receiving tariff refunds occurred in the Eastern District of Virginia.
One of the plaintiffs, Alexis Fennessy, lives in Newport News. According to the complaint, she shopped at Dollar Tree stores in Virginia at least monthly during the period covered by the lawsuit and noticed price increases after the tariffs took effect.
The lawsuit centers on tariffs imposed under the International Emergency Economic Powers Act, or IEEPA, beginning in 2025.
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The plaintiffs allege Dollar Tree raised prices on thousands of products to offset the cost of those tariffs. The complaint says the company used red stickers on merchandise to identify tariff-related price increases, with many items increasing from $1.25 to $1.50 or $1.75.
The U.S. Supreme Court ruled in February 2026 that IEEPA did not authorize the president to impose the tariffs. The lawsuit says the federal government subsequently began refunding tariff payments to importers.
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According to the complaint, Dollar Tree sought $379 million in tariff refunds and, as of Aug. 1, had received approximately $369 million in refunds plus $14 million in interest.
The plaintiffs allege Dollar Tree has not returned the corresponding tariff-related amounts to customers. They argue that allowing the company to retain both the higher prices paid by consumers and the government refunds would amount to an unjust “double recovery.”
The proposed nationwide class would include people who made in-store Dollar Tree purchases of goods subject to the IEEPA tariffs between Feb. 1, 2025, and Feb. 24, 2026. The lawsuit also proposes state-specific classes in nine states, including Virginia.
