A federal class-action lawsuit accuses Dollar Tree of raising prices to cover tariff costs, then pocketing $369 million in tariff refunds it received from the government.

Attorneys filed the suit on behalf of 10 Dollar Tree customers in U.S. District Court for the Eastern District of Virginia. The defendant is based in Chesapeake, Virginia.

Named plaintiff Alexis Fennessy said she shopped at Dollar Tree stores in Virginia and noticed price increases after the tariffs took effect.

According to the lawsuit, the retailer marked tariff-affected products with red stickers. Many of those items rose in price by as much as $1.75.

The dollar figures at the center of the complaint are substantial. Dollar Tree sought $379 million in tariff refunds as of Aug. 1, according to the suit. The company received about $369 million in refunds plus an additional $14 million in interest.

The plaintiffs argue that charging shoppers more because of tariffs, while keeping the refund money, amounts to what they call "double recovery." They say customers deserve the portion of their purchases tied to tariff-related price increases that Dollar Tree received back from the government.

The proposed federal class covers shoppers who made in-store purchases at Dollar Tree between Feb. 1, 2025, and Feb. 24, 2026. The complaint also proposes state-specific classes in nine states.

For retailers that use surcharges or tariff-linked pricing to offset cost pressures, the case tests whether refund proceeds must flow back to the shoppers who absorbed the higher prices.